- The company’s gross mining margin was hit hard by the decline in crypto prices.
- After the Ethereum-Merge, Hive began selling its excess energy to the grid.
While the price of cryptocurrencies fell dramatically last year, the industry that mines them suffered greatly. Some well-known firms in the industry went bankrupt, while others were forced to lay off employees and close locations to stay competitive. Revenue for the Canadian cryptocurrency miner Hive Blockchain, which had been at $29.6 million in Q2 but dropped to $14.3 million in Q3, followed this trend.
Hive reportedly turned a profit from mining in Q3 2022 by hedging its energy contracts, selling electricity back to the grid, and optimizing its operational capacity to concentrate on maximum return per KWHR. It is said to have mined 787 Bitcoin during that time, yielding $3.62 million in revenue at a Gross Mining Margin of 25%. The Vancouver-based cryptocurrency miner reported a net loss of more than $90 million.
Hit Hard by Ethereum Merge
The company’s gross mining margin was hit hard by the decline in cryptocurrency prices, dropping to $3.6 million in Q3 2022 from $15.9 million in the same period a year earlier. With the Merge update in September 2022, the firm has not mined any ETH in Q3 2022.
After losing the ability to mine one of the most prominent cryptocurrencies in the world, Hive’s Executive Chairman Frank Holmes is still upbeat. After the Ethereum-Merge, Hive began selling its excess energy to the grid and used its GPUs to mine Bitcoin.
Overall efficiency was increased by upgrading the current ASIC fleet. According to Holmes, the company’s low coupon fixed debt, appealing green renewable energy pricing, and high-performing energy-efficient ASIC and GPU chips will all help it weather the crypto winter.