Mining Firm Hive Blockchain Posted A Net Loss Of $90 Million Last Quarter

Key Points:

• Due to a 50% reduction in income and gross mining margin caused by the Ethereum blockchain’s move to proof-of-stake validation, Hive Blockchain experienced a loss during the third quarter of its fiscal year.
• The company said that it has dug up 787 Bitcoins in the third fiscal quarter ending December 31, 2022.

The crypto mining company Hive Blockchain announced that it had mined 787 Bitcoins in the third fiscal quarter ending December 31, 2022.

The company’s revenue in the quarter was $14.3 million, a decrease of approximately 51.6% from the previous quarter. Mining gross profit was $3.6 million, down 77% from $15.9 million in the second fiscal quarter.

The first quarter of 2022 was the final three months with Ethereum’s “Merge” update in September, which eliminated the blockchain’s proof-of-work validation technique. Hive stopped mining any Ethereum mainly due to the Ethereum merger and Bitcoin price drop.

Hive is mining several cryptocurrencies that it subsequently turns into bitcoin utilizing some of its graphics processing units (GPUs) that were previously used to mine ether. Launching HIVE Performance Cloud as part of its post-Merge plan will enable it to use its GPUs for high-performance computing tasks other than mining.

Frank Holmes, HIVE’s Executive Chairman, stated:

“We wish to again thank our loyal shareholders for believing in our vision to mine both Ethereum and Bitcoin. We are sad to see the higher margin from mining Ethereum gone however our HPC strategy which has taken longer to roll out is now growing rapidly on a month over month basis.”

Hive Blockchain said that while adjusted EBITDA1 for the quarter was $1.5 million due to mark-to-market accounting practices, net loss for the quarter ended December 31, 2022, was $90 million, or $1.09 per share, compared to 2021 profit for the year-ago period was $51.2 million, or $0.66 per share.

In terms of dollars per megawatt hour, or power use, the cloud sector is 25 times more profitable than mining in the present market environment, Hive reported on Tuesday. On a run-rate basis, Hive anticipates this business line to generate $1 million in yearly revenue.

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