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Hive Blockchain Provides November Production 2022 Update
Wednesday, December 21, 2022Company Profile | Follow Company
Vancouver, BC, Invalid Date--(T-Net)--HIVE Blockchain Technologies Ltd. (TSX.V:HIVE) (Nasdaq:HIVE) (FSE:HBFA.F) announced the production figures from the Company's global Bitcoin operations for the month of November 2022, with 264 Bitcoin produced.
Summary Overview:
HIVE owns all of its ASIC and GPU equipment, without over-burdensome debt servicing payments associated with any of our crypto mining hardware.
November 2022 Production Figures
HIVE announced its November 2022 production figures and mining capacity:
Darcy Daubaras the CFO of HIVE stated, "In November we continued to face several external macro forces which increased market turbulence due to the contagion concerns caused by the FTX implosion, rising interest rates and pronouncements by various governments on energy concerns. In response, we took a conservative strategy with our balance sheet and strengthened our liquidity position by selling some Bitcoin. We do not control these volatile external risks, but we can control how we adapt. We also began improving the efficiency of our mining fleet with new and more energy efficient equipment purchases which will provide more room for profitability, countering the effects of rising energy costs, rising global bitcoin mining difficulty since September and Bitcoin prices that have remained low."
Frank Holmes, Executive Chairman, HIVE Blockchain Technologies
Frank Holmes, Executive Chairman of HIVE stated, "HIVE has a high-performance culture and our experience in previous crypto winters has prepared us to adapt more quickly in times of market turbulence and uncertainties. The team has done an excellent job squeezing efficiencies everywhere they can and are now being opportunistic by quickly upgrading our Bitcoin ASIC miners with more efficient machines as the cost to buy ASIC miners like the S19j Pro have fallen almost 85% from prices seen last November 2021."
Aydin Kilic, President & COO, HIVE Blockchain Technologies
Aydin Kilic, President & COO of HIVE noted "HIVE, being the first publicly listed crypto miner in the world, has the experience of navigating crypto bear markets. What is unique in this crypto bear market, is the downturn of the macro economy as well, especially with technology stocks, amidst a global energy crisis. Companies like HIVE must be resilient in their strategies, as we cannot determine when the hashrate economics will recover. Rather, we must seek opportunities, which can include optimizing grid balancing to earn profits from energy contracts or acquiring distressed assets at steeply discounted rates. Capitalizing on these types of opportunities are only possible with a sound treasury management strategy, allowing for a strong balance sheet during periods of reduced profitability and market turmoil."
Mr. Kilic stated "We continue to strive for operational excellence. Our team diligently monitors hashrate economics, and the efficiency profiles of our global fleet of ASICs and GPUs. As such. we strive to always mine profitably."
"Our fleet of GPUs use a unique algorithm to mine altcoins, which are exchanged for Bitcoin, consequently we earn and take custody of Bitcoin only. This month our GPU fleet produced 39.3 BTC. This is in addition to the 224.7 Bitcoin produced from our Bitcoin ASIC mining operations, for a total of 264.0 Bitcoin produced."
HIVE Expansion Plans
HIVE is focused on navigating this bear market with a strong balance sheet, to provide confidence to shareholders.
The 5,800 HIVE BuzzMiners, powered by the Intel Blockscale ASIC, are expected to produce upwards of 630 PH/s. The Company expects to install all these HIVE BuzzMiners within existing operating infrastructure.
These miners will be integrated into our global operating fleet to upgrade existing legacy ASIC miners, thus lowering the Company's overall cost of Bitcoin production, and improving profitability. These Intel Blockscale ASICs have been fully paid for, and as such, the additional hashrate from the HIVE Intel BuzzMiners is fully funded, without the Company having to incur debt for hashrate growth, by collateralizing any ASICs or BTC.
Additionally, the 1,930 Bitmain S19j Pro Antminers are expected to produce upwards of 185 PH/s. Having new generation ASIC equipment upgrading existing legacy ASIC mining hardware, will improve HIVE's cost of production per Bitcoin, thus improving gross mining margins.
Global Energy Markets
The Company notes that energy markets globally are experiencing high levels of volatility, which is reflected in index pricing. While HIVE's energy portfolio has both fixed price contracts as well as spot/index pricing, HIVE strives to mitigate risk where possible by hedging energy contracts. As hedging contracts exist for fixed lengths of time, they must be renewed from time to time, and thus the ratio of fixed versus indexed energy cost can vary.
Rather than operate at full capacity for the sake of maximizing production, HIVE instead strives to operate at the optimal capacity which allows for best profitability which sometimes may favor selling energy back into the grid when this is more profitable than mining.
Network Mining Difficulty
Network difficulty factors are a significant variable in the Company's gross profit margins. The Bitcoin network difficulty was consistent throughout the month of November, with less than +/- 1% variance. Accordingly, Bitcoin mining difficulty throughout the month of November reflected new all-time highs. There are many publicly available Bitcoin chart services which publish the Network Difficulty on a daily basis, and we are happy to see it has just recently declined 7%. Additionally, Bitcoin hashrate economics, notably mining profitability, can be studied and analyzed using publicly available Bitcoin chart services.
RSU Grant
The Company announced that the Board of Directors has approved the grant of 16,000 restricted share units ("RSUs") to an officer of the Company which vest over 12 months. Each vested RSU entitles the holder to receive one common share of the Company. The grant of RSUs are subject to the approval of the TSX Venture Exchange.
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 endeavour to source only green energy to mine digital assets such as Bitcoin on the cloud.
Since the beginning of 2021, HIVE has held in secure storage the majority of its treasury of ETH and BTC derived from mining rewards. Our shares provide investors with exposure to the operating margins of digital currency mining, as well as a portfolio of cryptocurrencies, primarily 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.
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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