Crypto mining saw heavy losses last year as prices fell. Several notable players in the space have descended into bankruptcy, while others have had to take cost-cutting measures and close branches.
This was also reflected in Canadian cryptocurrency miner Hive Blockchain’s revenue, which halved to $14.3 million in the third quarter from a total of $29.6 million in the three months. previous ones.
Hive Blockchain Third Quarter Earnings
According to the official reportHive said that hedging its energy contracts, reselling power to the grid and optimizing its operating capacity to focus on maximum profit by KWHR helped it turn a profit on mining operations in the third quarter of 2022.
During this period, he reportedly mined 787 Bitcoins, with a gross mining margin of 25% representing $3.62 million in revenue from mining operations.
The Vancouver-based cryptocurrency miner reported a net loss of over $90 million due to “depreciation in the value of falling ASIC and GPU chips with lower Bitcoin and Ethereum prices and of the market position of Bitcoin HODL”.
Additionally, falling crypto prices significantly affected its gross mining margin, which fell 77% to $3.6 million in Q3 2022 from $15.9 million in the same period of the year. last year.
Ethereum Mining out of the picture
Q3 2022 was the first quarter in which the company did not mine ETH after the Merge upgrade in September. Hive Executive Chairman Frank Holmes remains optimistic even though mining the world’s largest altcoin was off the table. Touching on the subject, Holmes says:
“We are sad to see the higher margin of Ethereum mining disappear, but our HPC strategy, which took longer to roll out, is now growing rapidly month-over-month. We are happy to share that our robust growth is scalable and could potentially increase 10x over the next year as demand for our high quality chips due to huge global demand for Ai projects such as GPT CHAT , medical research, machine learning and rendering.”
After Ethereum-Merge, Hive resorted to reselling power to the network and repurposing its GPUs to mine Bitcoin. It also upgraded the existing fleet of ASICs to improve overall efficiency. Holmes believes that the company’s low-coupon fixed debt, attractive green renewable energy prices, and energy-efficient ASIC and GPU chips will further help weather the crypto winter.
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