- HIVE achieves record annual revenue of US$66.7 Million and earnings of $43.5 million
- Income from digital currency mining was US$66.7 million this fiscal year, a 174 per cent increase from the prior year
- Record net income of $42.5 million, from a loss of $1.9 million a year earlier, and $2.9 million lower than the previous quarter
- Gross mining margin expanded to $50.1 million, from $8.5 million last year
- Working capital increased by $86.6 million
- HIVE Blockchain Technologies Ltd is in the business of providing infrastructure solutions in the blockchain industry
- HIVE Blockchain (HIVE) Stock opened trading at C$3.74 per share
HIVE Blockchain Technologies (HIVE) has announced results for the full year ended March 31, 2021.
Income from digital currency mining was US$66.7 million this fiscal year, a 174 per cent increase from the prior year.
Record net income of $42.5 million, up significantly from a loss of $1.9 million a year earlier, and $2.9 million lower than the previous quarter.
Gross mining margin expanded to $50.1 million, from $8.5 million last year, and is $17.1 million higher than that experienced in the prior quarter of $10.6 million.
Net income per share grew to $0.12 from a loss of $0.01 during the prior year and is $0.01 lower than the previous quarter of December 31, 2020.
Frank Holmes, Interim Executive Chairman of HIVE commented on the company’s results.
“Fiscal 2021 was an incredible year for HIVE. Despite the effects of COVID-19 we have achieved record results and continued to increase our Ethereum and Bitcoin mining capacity.
Going forward, our focus is on improving efficiency and profitability across our mining operations by optimizing cryptocurrency mining output, continuing to lower costs, and maximizing our existing electrical and infrastructure capacity by installing new mining equipment as quickly as possible to leverage our fixed cost base and improve future mining margins.
This expansion and capital spending have been partially facilitated by the $100 million At-The-Market Program that we commenced in the last quarter of the year. This has allowed us to HODL 25,000 ETH and purchase new ASIC machines to expand and mine Bitcoin to HODL.
As it relates to our industry, Ethereum market conditions for miners improved significantly over the last year, driven by price increases and the adoption of the network for decentralized finance applications. Bitcoin mining conditions have also improved with a strong price increase since the halving on May 11, 2020, the date when HIVE started mining with new generation miners at its facility in Quebec. We continue to believe we are well-positioned to benefit from the continued adoption of Ethereum and Bitcoin globally.”
Fiscal year 2021 highlights
- Generated income of $66.7 million from digital currency mining
- Mined 595 Bitcoin and over 96,300 Ethereum during the year ended March 31, 2021
- Earned net income of $42.5 million for the year
- Increased working capital by $86.6 million
Digital currency assets total $57.5 million, as of March 31, 2021
Fiscal 2021 financial review
Income from digital currency mining was $66.7 million, an increase of approximately 128 per cent from the prior year. This increase is primarily due to an increase in the production of Ethereum and Bitcoin and considerably higher coin prices compared to the prior year.
Gross mining margin during the year was $50.1 million, or 75 per cent of income from digital currency mining, compared to $8.5 million, or 24 per cent of income in fiscal 2020. The improvement was primarily due to the company’s assumption of control over its operations in Sweden during fiscal 2020, which has resulted in a lower cost of operations, combined with the cessation of Bitcoin cloud mining operations after they became unprofitable in the third quarter of fiscal 2020, and the switch to independent mining at our bitcoin mining facility in Quebec.
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 fiscal 2021 was $42.5 million, or $0.12 per share, compared to a net loss of $1.7 million, or loss of $0.01 per share, in fiscal 2020. The improvement was driven primarily by the improvement in gross mining margin, higher Ethereum and Bitcoin prices, gains on the sale of digital currencies, and foreign exchange.
HIVE Blockchain is in the business of providing infrastructure solutions in the blockchain industry, including the mining of digital currencies.
HIVE Blockchain Technologies Ltd. (HIVE) opened trading at C$3.74 per share.