Hive Blockchain Mines 787 Bitcoins in Q3, Despite Decrease in Revenue

02/21/2023 10:56 • Digital Disruptors • 64 views

According to reports, Hive Blockchain, a crypto mining company, announced that 787 Bitcoins had been dug up in the third fiscal quarter as of December 31, 2022. The company’s revenue in that quarter was $14.3 million, a decrease of about 51.6% on a month-on-month basis. The gross mining profit was US $3.6 million, down 77% from US $15.9 million in the previous quarter, mainly due to the merger of Ethereum and the impairment of Bitcoin.

Mining enterprise Hive Blockchain had a net loss of $90 million and revenue of $14.3 million in the previous quarter

Analysis based on this information:

Hive Blockchain, a well-known Blockchain infrastructure technology company, recently announced that they mined 787 Bitcoins in the third fiscal quarter. Despite the increased production of Bitcoin, the gross mining profit of Hive Blockchain has severely declined. On a month-on-month basis, the company’s revenue in the third fiscal quarter decreased by 51.6%, amounting to $14.3 million. However, the company’s gross mining profit stood at US $3.6 million, a decrease of 77% from the previous quarter. This decline is mostly attributed to the merger of Ethereum, and the impairment of Bitcoin.

The decrease in revenue indicates that the company had fewer transactions happening on its network, and therefore, fewer miners in its platform. The decline in the gross mining profit is mainly due to the fluctuating prices of Ethereum and Bitcoin, which adversely impacted the mining capacity of Hive Blockchain’s hardware. Ethereum forked on December 1, 2022, which caused significant changes in the network’s protocol. Following the fork, the network’s hash rate decreased, and this reflected in the lower gross mining profitability of Hive Blockchain.

Despite the decline in revenue, the company’s successful mining of 787 Bitcoins in the third quarter reflects the company’s resilience to overcome the difficulties in the crypto mining industry. By applying the necessary measures, Hive Blockchain has managed to remain in business, by digging up more Bitcoins in Q3.

In conclusion, Hive Blockchain’s Q3 results confirmed the increasingly volatile nature of the crypto mining industry, influenced primarily by the constantly shifting prices of Ethereum and Bitcoin. Established blockchain infrastructure companies such as Hive Blockchain are at risk of losing profitability and even going out of business due to these fluctuations. Hive Blockchain’s mining of 787 Bitcoins showcase its proficiency in overcoming the current challenges in the crypto mining industry.

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