Vancouver, British Columbia–(Newsfile Corp. – August 16, 2022) – HIVE Blockchain Technologies Ltd. (TSXV: HIVE) (NASDAQ: HIVE) (FSE: HBFA) (the “Company” or “HIVE”) is pleased to announce the earnings report for the first quarter ended June 30, 2022 (all amounts in US dollars, unless otherwise indicated).
We achieved strong gross mining margin of $27.0 million for the quarter, a 18% increase over the prior quarter of $22.9 million. This fiscal achievement was driven by our global Bitcoin and Ethereum mining operations which experienced significant hashrate growth during this period. In addition to the Company’s expansions, HIVE maintains the best operational uptime amongst all its peers, with HIVE repeatedly emerging at the most efficient crypto-miner based on digital assets mined per Exahash (commonly measured as quantity of mined Bitcoin per Exahash of reported hashrate).
Additionally, the Company’s gross mining margin of 61% this period is also an increase from the gross mining margin from last quarter of 42%. HIVE has been able to consistently mine with strong profit margins during periods of market volatility, as a result of being globally diversified and enjoying low power costs in Sweden and Quebec, and higher profit margins from the Ethereum mining business. The Company notes that currently with Ethreum at $1,900, the legacy GPU fleet of RX580 cards generate approximately $0.30 per KWHR of revenue, and our new data center grade Nvidia GPU cards generate approximately $0.40 to $0.50 per KWHR of revenue. Whereas Bitcoin ASICs are generating approximately $0.11 to $0.15 per KWHR in revenue, at Bitcoin price of $24,000 and Difficulty of 28.1T, for ASICs with efficiency between 30 to 40 Joules per Terahash (J/TH).
We achieved revenue of $44.2 million for this quarter, as we mined 1338 Bitcoin equivalent, comprised of 821 green and clean Bitcoin as well as 7,675 green and clean Ethereum. This compares with $49.8 million revenue in the previous quarter, when HIVE mined 1248 Bitcoin equivalent, comprised of 787 Bitcoin and 6,325 Ethereum. As such, HIVE’s overall production of digital currencies increased by 7% quarter over quarter, comprised of 4% more Bitcoin produced and 20% more Ethereum produced.
The Company notes, HIVE’s Bitcoin production of 821 Bitcoin this quarter represents an increase of 265% year over year, where in the same period last year (period end June 30, 2021), HIVE mined 225 Bitcoin. This reflects a substantial growth in our operating hashrate, in large part a result of our New Brunswick facility expanding from 30MW last year, to currently operating over 17,600 new generation ASIC miners, operating at approximately 60MW of capacity. This large increased in quantity of Bitcoin production stands even as network difficulty has effectively doubled during this one-year period.
Frank Holmes, HIVE’s Executive Chairman, stated, “We wish to again thank our loyal shareholders for believing in our vision to mine both Ethereum and…