HIVE Blockchain - Frank Holmes, Executive Chairman.
Frank Holmes, Executive Chairman.
Source: HIVE Blockchain.
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  • 264 Bitcoin in November with a monthly average hashrate of 2.51 Exahash, representing an average of 105 Bitcoin Per Exahash
  • 2.31 Exahash of BTC Hashrate with a monthly average of 2.51 Exahash
  • HIVE has received 262 units of its new HIVE BuzzMiner, powered by the Intel Blockscale ASIC with 420 additional units due shortly
  • HIVE has purchased a total of 2,130 new Bitmain S19j Pro Antminers expected to arrive over the next two months
  • HIVE Blockchain Technologies provides infrastructure solutions in the blockchain industry, including the mining of digital currencies
  • Shares of Hive Blockchain Technologies Ltd. (HIVE) are up 1.93 per cent on the day, trading at C$2.64 per share at 3:30 pm ET

HIVE Blockchain Technologies (HIVE) has provided production figures from its Bitcoin operations for the month of November 2022.

Summary:

  • HIVE produced 264 Bitcoin in November with a monthly average hashrate of 2.51 Exahash, representing an average of 105 Bitcoin Per Exahash.
  • HIVE has received 262 units of its new HIVE BuzzMiner, powered by the Intel Blockscale ASIC. An additional 420 units are expected to be received in the next week.
  • Total production allocation of the HIVE BuzzMiner for 2022 is 5,800 units which are all expected to be delivered between December 2022 and January 2023.
  • HIVE has purchased a total of 2,130 new Bitmain S19j Pro Antminers, which are expected to arrive in December 2022 or early January 2023
  • 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:

  • 264 BTC produced
  • 8.8 BTC per day on average
  • 2.31 Exahash of BTC Hashrate with a monthly average of 2.51 Exahash, which is equal to 105 Bitcoin per Exahash

Darcy Daubaras, the CFO of HIVE, commented on the results.

“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 of HIVE, added,

“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 has fallen almost 85 per cent from prices seen last November 2021.”

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 macroeconomy 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 is only possible with a sound treasury management strategy, allowing for a strong balance sheet during periods of reduced profitability and market turmoil.”

Mr. Kilic added,

“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 uses 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.”

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 the existing operating infrastructure. These miners will be integrated into the company’s global operating fleet to upgrade existing legacy ASIC miners, lowering the overall cost of Bitcoin production and improving profitability. The Intel Blockscale ASICs have been fully paid for, and the additional hashrate from the HIVE Intel BuzzMiners is fully funded.

Additionally, the 1,930 Bitmain S19j Pro Antminers are expected to produce upwards of 185 PH/s. Having new generation ASIC equipment and upgrading existing legacy ASIC mining hardware will improve HIVE’s cost of production per Bitcoin, thus improving gross mining margins.

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 the best profitability, which sometimes may favour 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 per cent variance. Accordingly, Bitcoin mining difficulty throughout the month of November reflected new all-time highs.

HIVE Blockchain Technologies is in the business of providing infrastructure solutions in the blockchain industry, including the mining of digital currencies.

Shares of Hive Blockchain Technologies Ltd. (HIVE) are up 1.93 per cent on the day, trading at C$2.64 per share at 3:30 pm ET.


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