HIVE in turn posted net losses. The Canadian miner sold the 858 bitcoins and 7,309 eth mined during the third quarter.
Hive bids farewell to Ethereum
HIVE stopped mining Ethereum on September 15 (moved to Proof of Stake). CEO Frank Holmes said to himself “sad to see the higher margin of ethereum mining gone”.
The firm, which previously mined around 90 ETH per day, will be able to focus on bitcoin. The 858 bitcoins mined during the third quarter represents a 31% year-over-year increase.
This growth is due “largely to the expansion of facilities in New Brunswick, from 30 MW last year to 60 MW”. That is approximately 17,300 latest-generation ASICs.
HIVE’s hash rate has tripled over the past year, going from 700 PH/s to 2.28 PE/s. To which should be added a 1 EH/s over the next four months (with ASICs manufactured by Intel).
The average production cost for one bitcoin was $9,894. That is a reduction of 23% compared to the previous quarter. That’s better than fellow Hut 8’s $17,700. That said, that number isn’t really comparable since HIVE factored in the resale of its graphics cards.
From a strategic point of view, HIVE highlighted do not have excessive debts:
“We think our low rate debt; the attractive prices of our renewable energy and our latest generation ASICs will help us navigate through the storm”said the CEO of HIVE.
The firm also notes that its mining machine utilization rate is the highest in the industry.
Overall, the miner’s mining revenue amounted to $30 million. However, this figure drops to $16 million once production costs are deducted. That is a gross margin of 54%.
In addition, the depreciation of 26.2 million dollars of its graphics cards went through it. To which is added the depreciation of its reserves of BTC and ETH. So much so that the miner ultimately shows a net loss of $37 million.
Let’s finish by pointing out that HIVE has the equivalent of $65 million in reserve. That’s nearly 4,000 BTC. Comfortable, but it’s less than Hut 8’s 8388 BTC.
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