- Gross revenue from digital currency mining was $37.2 million in the first quarter, a 466 per cent increase from the same quarter last year
- Quarterly net income was $18.6 million, up from $1.8 million a year earlier
- Mined 225 Bitcoin and over 9,700 Ethereum during the three-month period ended June 30, 2021
- Gross mining margin during the year was $31.0 million, or 83 per cent of revenue from digital currency mining
- HIVE Blockchain Technologies Ltd is in the business of providing infrastructure solutions in the blockchain industry
- Hive Blockchain stock opened trading at C$3.49 per share
HIVE Blockchain Technologies (HIVE) has announced its results for the first quarter ended June 30, 2021.
All amounts are in US dollars unless otherwise indicated.
Gross revenue from digital currency mining was $37.2 million in the first quarter, a 466 per cent increase from the same quarter last year, and 11 per cent higher than the previous quarter.
Quarterly net income was $18.6 million, up from $1.8 million a year earlier, and $4.3 million higher than the previous quarter.
Gross mining margin expanded to $31.0 million, from $2.6 million last year, and is $3.3 million higher than that experienced in the prior quarter of $27.7 million.
Net income per share grew to $0.05 from $0.00 during the prior year and is $0.01 higher than the previous quarter of March 31, 2021.
Frank Holmes, Interim Executive Chairman of HIVE, commented on the company’s success.
“The first quarter of fiscal 2022 has continued the momentum that we had in fiscal 2021. It’s been an incredible year for HIVE. Despite the effects of COVID-19 and associated supply chain issues, we have achieved record results and continued to increase our Ethereum and Bitcoin mining capacity.
What many investors have not realized is the significance of mining Ethereum in addition to Bitcoin, which has continued to exhibit very strong performance throughout this calendar year, after our Q1 period end of June 30, 2021, and even after the London Hard Fork in August 2021.
Of note, for the month of September 2021, HIVE mined approximately 221 Bitcoin and 2,572 Ethereum. On a daily revenue basis during September 2021, this income from Ethereum would be equal to mining approximately 186 Bitcoin. Therefore, the total equivalent of Bitcoin mined on a daily revenue basis for HIVE’s September 2021 production is approximately 407 Bitcoin or an average of approximately 13.6 Bitcoin equivalent mined per day.
As such, Hive appears to be the most profitable Crypto mining company amongst our peers with a rapidly growing Bitcoin HODL strategy.
During this most recent quarter, we acquired HIVE Atlantic in April 2021, giving us a substantial Bitcoin mining operation in New Brunswick, Canada. We are well into the process of expanding capacity through new construction at this data centre campus and are installing next-generation Bitcoin mining equipment which is arriving monthly,” Frank Holmes continued.
“The acquisition of the New Brunswick data centre campus gives us a strategic advantage in this competitive industry. Owning our own state-of-the-art facilities means we don’t have to worry about landlords raising the rent and gives us full control of our operations.
HIVE now has the land, buildings, talent, and mining equipment we need to succeed. We are focused on improving efficiency and profitability by optimizing cryptocurrency mining output. We’re lowering costs and maximizing our existing electrical and infrastructure capacity by installing new mining equipment as the orders roll in.”
Q1 quarterly highlights- June 30, 2021
- Generated revenue from digital currency mining of $37.2 million, with a gross mining margin of $31.0 million
- Mined 225 Bitcoin and over 9,700 Ethereum during the three-month period ended June 30, 2021
- Earned net income of $18.6 million for the period
- Increased working capital by $20.9 million during the three-month period ended June 30, 2021
- Recorded digital currency assets of $82.2 million as of June 30, 2021
Q1 F2022 financial review
For the three months ended June 30, 2021, revenue from digital currency mining was $37.2 million, a 466 per cent increase from the prior year. This was primarily due to an increase in the production of Ethereum and Bitcoin stemming from mining expansion, and considerably higher coin prices.
Gross mining margin during the year was $31.0 million, or 83 per cent of revenue from digital currency mining, compared to $2.5 million, or 39 per cent of revenue from digital currency mining, in the same period the prior year. The improvement was primarily due to the company’s assumption of control over its operations in Sweden during fiscal 2020 and the cessation of Bitcoin cloud mining operations after they became unprofitable in the third quarter of fiscal 2020.
Net income during the quarter ended June 30, 2021, was $18.6 million, or $0.05 per share, compared to $1.8 million, or $0.00 per share in the same period last year.
HIVE Blockchain Technologies Ltd 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$3.49 per share.
