The company, Hive Blockchain technologies revenue declines by 44% Y/Y despite overall mining production surge.
The Vancouver-based digital asset mining startup Hive Blockchain said on Nov. 15 that its revenue for the second quarter (ended Sept. 30) decreased by 44% year over year to $29.6 million.
The company’s net income also declined during this time, going from a loss of $37 million to $59.8 million in the same quarter last year. Hive Blockchain’s net income in the second quarter of 2022 was significantly larger than its revenue since the firm also realized gains totaling over $22 million on the Bitcoin (BTC $16,819) and Ether (ETH $1,252) it mined.
Although the company did not experience significant coin capital losses in the second quarter of 2023, it did take an impairment charge of $26.2 million for its mining equipment. Even if the company’s capacity for mining Bitcoin has increased, losses seem to have increased.
After taking into consideration a 15.9% year-over-year reduction in its ETH mining, which amounted to 7,309 coins in the quarter, Hive Blockchain mined 31% more BTC than in Q2 2022 for a total of 858 coins, which still has higher value.
The startup of the company’s New Brunswick Bitcoin mining operation over the previous 12 months, which brought over 17,300 application-specific integrated circuit (ASIC) miners online, was blamed for the overall production surge. Executive Chairman Frank Holmes expressed optimism about the company’s operations:
“Strategically, we have not borrowed expensive debt against our mining equipment or pledged our Bitcoins for costly loans, thus our balance sheet remains healthy to weather this storm. We believe our low coupon fixed debt; attractive green renewable energy prices and high performing energy efficient ASIC chips will help us navigate through this crypto winter.”
However, because mining difficulty is at an all-time high, the company has issued a warning about rising operating costs in the future. At the moment, Hive Blockchain accounts for roughly 0.85% of the hash rate of the Bitcoin network. Hive Blockchain stated on its balance sheet at the end of the quarter that it had 1,116 BTC, worth $48.4 million, and 25,154 ETH, worth $74.7 million.
