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HIVE Blockchain Announces Record Revenue of $52.6 Million and Earnings for 2nd Quarter 2021, up 305% YoY
Thursday, November 18, 2021Company Profile | Follow Company
Vancouver, BC, November 18, 2021--(T-Net)--HIVE Blockchain Technologies Ltd. (TSX.V:HIVE) (Nasdaq:HIVE) (FSE: HBF) announced a record earnings report for the second quarter ended September 30, 2021 (all amounts in US dollars, unless otherwise indicated).
For the three-month period, revenue rose to $52.6 Million, up 41% compared with last quarter, and 305% since the same quarter last year. Net income reached $59.8 million, up 342% from last quarter, and 549% since the prior year.
HIVE ended the September quarter holding 1,116 Bitcoin ("BTC") worth $48.4 Million and 25,154 Ether ("ETH") worth $74.7 Million.
Frank Holmes, HIVE's Executive Chairman, stated "We wish to thank our loyal shareholders for believing in our vision to mine both Ethereum and Bitcoin to generate robust cash flow returns on invested capital and believe this report validates the significant contribution to our strategy to mine both BTC and ETH and HODL as many coins as possible."
Q2 Quarterly Highlights- September 30, 2021
Q2 F2022 Financial Review
For the three months ended September 30, 2021, revenue from digital currency mining was $52.6 million, an increase of approximately 305% from the prior year primarily due to an increase in cryptocurrency prices, the increased production of Bitcoin as a result of the Quebec and Atlantic facility acquisition and the purchase of miners for those facilities.
Gross mining margin1 during the period was $45.0 million, or 86% of income from digital currency mining, compared to $9.2 million, or 71% of income from digital currency mining, in the same period in the prior year. The Company's gross mining margin from digital currency mining is partially dependent on external network factors including mining difficulty, the amount of digital currency rewards and fees it receives for mining, as well as the market price of digital currencies.
Net income during the quarter ended September 30, 2021, was $59.8 million, or $0.16 per share, compared to $9.2 million, or $0.03 per share, the same period last year. The improvement was driven primarily by the improvement in gross mining margin1, higher Ethereum and Bitcoin prices, gains on the sale of digital currencies, and foreign exchange.
Financial Statements and MD&A
The Company's Consolidated Financial Statements and Management's Discussion and Analysis (MD&A) thereon for the three and six months ended September 30, 2021 will be accessible on SEDAR at www.sedar.com under HIVE's profile and on the Company's website at www.HIVEblockchain.com.
Construction and Capital Investment
The Company is nearing completion of two additional data centres at its New Brunswick, Canada campus. Construction began on this site in July 2021 and has progressed largely on schedule, despite supply chain delays. The first of the two new data centers is expected to be commissioned by mid-December 2021, and the second in March 2022.
During the second fiscal quarter, HIVE invested heavily in new Bitcoin miners to fill up these new data centres. At quarter-end, the company had more than 16,000 new BTC miners on order. And since then, the Company has announced a C$100 million capital raise to invest in new Bitcoin mining equipment.
Frank Holmes, HIVE Executive Chairman, stated, "I'm pleased to see our infrastructure investments of the past few years really paying off. We feel like HIVE is in a fantastic spot to benefit from the current boom in crypto adoption.
Strategic Investments
"HIVE has been very proud to support the Ethereum ecosystem through investments with strategic partners in DeFi Technologies, Network Media Group, and Tokens.com." said Mr. Holmes.
About HIVE Blockchain Technologies Ltd.
HIVE Blockchain Technologies Ltd. went public in 2017 as the first cryptocurrency mining company with a green energy and ESG strategy.
HIVE is a growth-oriented technology stock in the emergent blockchain industry. As a company whose shares trade on a major stock exchange, we are building a bridge between the digital currency and blockchain sector and traditional capital markets. HIVE owns state-of-the-art, green energy-powered data centre facilities in Canada, Sweden, and Iceland, where we source only green energy to mine on the cloud and HODL both Ethereum and Bitcoin. Since the beginning of 2021, HIVE has held in secure storage the majority of its ETH and BTC coin mining rewards. Our shares provide investors with exposure to the operating margins of digital currency mining, as well as a portfolio of cryptocurrencies such as ETH and BTC. Because HIVE also owns hard assets such as data centers and advanced multi-use servers, we believe our shares offer investors an attractive way to gain exposure to the cryptocurrency space. HIVE traded over 2 billion shares in 2020.
[1] Non-IFRS measure. A reconciliation to its nearest IFRS measures is provided under "Reconciliations of Non-IFRS Financial Performance Measures" above.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release Forward-Looking Information Except for the statements of historical fact, this news release contains "forward-looking information" within the meaning of the applicable Canadian securities legislation that is based on expectations, estimates and projections as at the date of this news release. "Forward-looking information" in this news release includes, but is not limited to, statements with respect to information about the Offering and the use of proceeds, potential dilution and application of the Penalty Provision; business goals and objectives of the Company; and other forward-looking information concerning the intentions, plans and future actions of the parties to the transactions described herein and the terms thereon. [ MORE ] |
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HIVE Digital Technologies Ltd.
Vancouver (Other Tech Sectors)
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