HIVE Blockchain: Revenues From GPU Mining Plunged After The Merge

HIVE Blockchain, a Bitcoin miner, stated that revenue from GPU mining has plummeted since transitioning to altcoins following The Merge.

Following The Merge, as hashrate migrated from Ethereum into other coins, the company’s revenue from GPU mining increased from $120,000-$150,000 per day to $20,000-$30,000 per day. HIVE Blockchain said:

“Historically, HIVE’s Ethereum GPU mining was generating 3x to 4x more revenue per MW of capacity than ASIC Bitcoin mining.”

However, since The Merge, poof-of-work mineable coins have seen tremendous volatility, going upwards and presently generating more than $30,000 per day in income, according to the firm.

HIVE further stated that the same energy capacity spent on ASICs mining bitcoin could yield about $41,000 at current difficulty levels.

The firm has ASIC computers ready to make the move if it so chooses, but it is presently calculating the money it may get after the ecosystem stabilizes and if it becomes commercially advantageous. The executive chairman Frank Holmes said:

“HIVE has successfully used its Ethereum operations to fund and help build out our company’s global Bitcoin mining operations. Our plans are to continue expanding our sustainable green energy Bitcoin mining and seek out new growth opportunities throughout this bear cycle. The company has sold substantively all of its Ethereum.”

Nonetheless, GPU mining accounts for a minor percentage of HIVE’s revenue (using 25 of the company’s total 130 megawatts of power capacity), with the remainder devoted to bitcoin mining. According to the firm, the Ethereum mining industry prepared it for success in bitcoin mining, which it is currently focusing on.

HIVE had a balance of 3,350 BTC and 356 ETH as of September 30, down from 5,100 ETH at the end of August.

The company’s GPU hashrate changed to other mineable currencies, establishing Bitcoin rewards rather than keeping those coins. Following The Merge, it generated an extra 15.8 BTC in this manner.

HIVE’s total BTC equivalent produced via GPU mining plummeted 44% month over month, from 228.4 BTC in August solely from Ethereum mining to 111.7 BTC from Ethereum and 15.8 BTC from other currencies in September.

HIVE President and COO Aydin Kilic said:

“As a testament to Hive’s industry-leading hashing uptime, and resilience to navigate new opportunities in proof-of-work mining, we have emerged with continued revenue earning payouts in Bitcoin from all of our GPU fleet thanks to our global technical team.”

By September 30, HIVE’s Bitcoin mining operating capacity was 2.28 EH/s. It intends to reach 2.7 EH/s by the end of this month and add 1 EH/s over the next three to four months.

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