HIVE Blockchain Technologies (TSXV:HIVE) (NASDAQ:HIVE) mined 307 Bitcoin and possesses a BTC HODL balance of 3,311 BTC as of November 5, 2022.
Bitcoin is up 4.5 per cent this month, trading at USD$20,305.69. It’s still down by 70.3 per cent from its all-time high of $69,044.77.
“We are very happy to be producing over 300 Bitcoin per month, which is about 1% of the global network, even when network difficulty is at an all-time high. We have sold all our Ethereum holdings. In October we produced an average of 9.9 Bitcoin per day,” said Frank Holmes, executive chairman of HIVE.
Founded in 2017, Hive Blockchain Technologies was the first cryptocurrency miner with a green energy and ESG strategy. It’s maintained a growth oriented strategy throughout its relatively short life with a goal of building a bridge between digital currency, the blockchain sector and traditional capital markets. Hive employs green energy data centres in Canada, Sweden and Iceland, where it sources renewable energy resources to mine BTC on the cloud.
Hive diversified its holdings in 2021, expanding beyond BTC to include ETH mining rewards in its treasury. The company’s shares give investors exposure to the operating margins of cryptocurrency mining, and cryptocurrency itself in treasury. This is now mostly BTC as the company has recently sold its ETH.
The Bitcoin balance sheet
Hive has a strong balance sheet with roughly USD$70 million in BTC and no equipment related debt. Also, Hive owns all of its ASICs and GPUs outright. There’s also there’s no debt servicing agreements in place to pull down the liabilities section of its balance sheet.
The company produced 307 BTC in October from ASIC and GPU mining operations, which amounts to 115 Bitcoin per exahash. Also, the company is working on installing its Micro BT M30S++ mining equipment. Presently, the company has installed 80 petahash per second worth of miners and the overall goal is getting 1 exahash of Hive Intel Bitcoin miners set up for the next 3-4 months.
“I am very pleased with HIVE’s growth of Bitcoin ASIC hashrate over the last year, without taking on the risk of expensive equipment financing or Bitcoin backed loans. Most of the mining industry is plagued with loans and debt, where either their Bitcoin balance sheet is encumbered, or the ASIC hardware they have purchased has expensive debt associated with it. The leveraging of assets during the bull market is causing great stress for our peers in the mining industry, as asset values have corrected to bear market conditions,” Holmes said.
Novel answers to network difficulty
The networking mining difficulty is the principle source of conflict in cryptocurrency mining. If it’s harder to mine a particular cryptocurrency, the cost per coin goes up because of the electricity expenditure required. Eventually, the difficulty pushes miners out of the market because it’s no longer profitable to mine the coin. Bitcoin’s network difficulty rose 17 per cent in October, which is substantial but not overwhelming. Still, there are multiple different ways to avoid the difficulty of mining Bitcoin. The best way is mining altcoins and trading for Bitcoin.
“Our fleet of GPU’s now use a unique algorithm to mine altcoins, which are exchanged for Bitcoin, therefore HIVE earns and takes custody of Bitcoin only. This month our GPU fleet produced 45 BTC. This is in addition to the 262 Bitcoin produced from our Bitcoin ASIC mining operations during October, for a total of 307 Bitcoin produced,” said Aydin Kilic, president & COO of HIVE.