<p>HIVE
Blockchain Technologies Ltd. (<a href=”https://www.financemagnates.com/tag/hive-blockchain-technologies/” target=”_blank” rel=”follow”>TSX:HIVE</a>), a publicly-listed <a href=”https://www.financemagnates.com/terms/c/crypto-mining/” class=”terms__main-term” id=”b7de0d78-81b9-460d-b33d-311d7d0dff0e” target=”_blank”>crypto mining</a>
company, has published a quarterly report for the three-month period ended 31
December 2022, showing a significant decrease in digital currency production
revenue of 51.6% year-over-year (YoY) to $14.1 million.</p><p>HIVE Reports Q4 Financials</p><p>According
to Tuesday’s press release, Ethereum’s ‘The Merge’, prolonged cryptocurrency
winter, rising mining difficulty and tumbling crypto prices were among the main
reasons for the sharp yearly decrease in quarterly revenue.</p><p>HIVE was
able to mine 787 BTC in the reported period, rising 13% YoY. In January, the
publicly-listed miner <a href=”https://www.financemagnates.com/cryptocurrency/hive-blockchain-increases-its-bitcoin-production-mines-4752-btc-in-2022/” target=”_blank” rel=”follow”>showed an overall increase in Bitcoin production
statistics for 2022</a> of 18% YoY to 4,752. However, the turbulences mentioned above cut
the profit margins down effectively.</p><p>The crypto
miner held $39 million in cryptocurrency assets at year-end. The company
reported a significant increase in new Bitcoin production difficulty in the
fourth quarter, growing 37% to $18,072 compared to $9,894 reported in the
previous quarter.</p><p>The net
result for the entire quarter translated to a sizable loss of $90 million,
compared to the $37 million loss reported in the third quarter of the calendar
year 2022. In the three months ending 30 September 2022, <a href=”https://www.financemagnates.com/cryptocurrency/hive-revenues-down-45-in-q3-despite-higher-btc-production/” target=”_blank” rel=”follow”>the company reported a
45% decrease in revenue</a>, despite the higher BTC production.</p><p>“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 and GPU chips will help
us navigate through this crypto winter,” Frank Holmes, HIVE’s Executive
Chairman, commented.</p><p>Watch the recent FMLS22 panel on reimagining the crypto market structure.</p><p>Gird Balancing to Help
HIVE</p><p>According
to a separate report from two weeks ago, <a href=”https://www.financemagnates.com/cryptocurrency/hive-blockchain-reports-btc-production-and-bets-od-grid-balancing/” target=”_blank” rel=”follow”>HIVE was able to earn $180,000 from
balancing the grid</a>, expanding its revenues from direct <a href=”https://www.financemagnates.com/terms/b/bitcoin/” class=”terms__secondary-term” id=”261088a9-0f41-4202-a73c-31f75ba6bd93″ target=”_blank”>Bitcoin</a> mining. The
income from the last month’s grid balancing equals the mined value of
approximately 10 Bitcoins.</p><p>“Through
hedging our energy contracts, selling power back to the grid, and optimizing
our operating capacity to focus on maximum profit per KWHR, HIVE has realized
profit from mining operations this quarter,” HIVE commented in the quarterly
results press release.</p><p>Optimizing
energy allocation allows HIVE to boost hashrate numbers or generate additional
revenue by returning the resources to the grid. </p><p>Crypto Miners Closed a Strong Year</p><p>HIVE’s yearly
BTC production statistics coincide with similar numbers published by another
publicly-listed crypto company, Bitfarms, which showed a <a href=”https://www.financemagnates.com/cryptocurrency/bitfarms-ends-2022-with-50-increase-in-btc-mining/” target=”_blank” rel=”follow”>49,6% YoY increase in Bitcoin
mining</a> from 3,453 in 2021 to 5,167 in 2022.</p><p>However,
the rising mining statistics failed to compensate for declines in the major
asset prices, leading to a sharp drop in overall revenues. They slumped by 37.5%
to $9.55 billion in 2022, which was <a href=”https://www.financemagnates.com/cryptocurrency/why-bitcoin-miners-made-6-billion-less-in-2022/” target=”_blank” rel=”follow”>$6 billion lower than in the
record-breaking 2021.</a></p>
This article was written by Damian Chmiel at www.financemagnates.com.
