HIVE Blockchain Technologies Ltd., a cryptocurrency mining company listed on the TSX Venture Exchange, has announced its production figures for March 2023. The company’s executive chairman, Frank Holmes, stated that HIVE was able to produce 282 Bitcoin despite the all-time high difficulty. Furthermore, the average daily HPC income increased by 14% on average month-over-month from February to March. Aydin Kilic, the President and CEO of HIVE, also noted that the company had successfully deployed its first buildout of the HIVE BuzzMiner and mined at an average hashrate of over 3 Exahash for the month of March. Additionally, HIVE’s GPU fleet is generating approximately 16% more revenue per megawatt hour than most Bitcoin mining ASICs.
The Bitcoin network difficulty was 43.1T as of March 1, and it increased to 46.8T as of March 31, reaching an all-time high. Accordingly, Bitcoin mining difficulty ended the month about 9% higher than the beginning of the month. The network difficulty factors are a significant variable in the company’s gross profit margins. The Bitcoin Network Difficulty is a publicly available statistic that reflects the total number of Bitcoin miners online and is important in analyzing a company’s gross profit margins and the number of Bitcoin produced. As more people mine Bitcoin, the daily Bitcoin block reward, which is presently fixed at 900 Bitcoin per day, gets split amongst more miners; thus, each miner receives a smaller portion of the block reward. Conversely, as Bitcoin prices fall, many miners may lose money and power down, thus taking their hashrate off the network, causing Network Difficulty to decrease.
Those miners with the lowest costs of production, by virtue of having more efficient machines and/or lower energy costs, are able to continue their production during these volatile cycles. Not all miners will continuously mine during the month; as a result, some miners will produce less Bitcoin than expected relative to their advertised hashrate. For the foregoing reasons, HIVE will self-curtail part of its operations if the unhedged spot energy prices are uneconomical, thereby leaving part of its total gross hashrate unutilized. All Bitcoin miners are striving to use the most efficient Bitcoin ASIC chips, and HIVE is happy that it has been able to upgrade its global fleet during this crypto market downturn.
HIVE Blockchain Technologies Ltd. went public in 2017 as the first cryptocurrency mining company publicly listed on the TSX Venture Exchange, which also focused on sourcing green energy. HIVE is a growth-oriented technology stock in the emergent blockchain industry. The company owns state-of-the-art, green energy-powered data center facilities in Canada, Sweden, and Iceland, where they endeavor to source green energy to mine digital assets such as Bitcoin on the cloud. Since the beginning of 2021, HIVE has held in secure storage the majority of its treasury of ETH and BTC derived from mining rewards. The company’s shares provide investors with exposure to the operating margins of digital currency mining, as well as a portfolio of Bitcoin. Because HIVE also owns hard assets such as data centers and advanced multi-use servers, the company believes its shares offer investors an attractive way to gain exposure to the cryptocurrency space.
In conclusion, HIVE Blockchain Technologies Ltd. has announced its production figures for March 2023. Despite the all-time high difficulty, the company was able to produce 282 Bitcoin, and the average daily HPC income increased by 14% on average month-over-month from February to March. The company’s GPU fleet is generating approximately 16% more revenue per megawatt hour than most Bitcoin mining ASICs. The Bitcoin network difficulty increased by 9% in March, reaching an all-time high. HIVE will self-curtail part of its operations if the unhedged spot energy prices are uneconomical, leaving part of its total gross hashrate unutilized. HIVE is a growth-oriented technology stock in the emergent blockchain industry that offers investors an attractive way to gain exposure to the cryptocurrency space.