Crypto mining saw severe losses last year as prices went south. Several notable players in the space slid into bankruptcy, while others had to take cost-cut measures and shut down branches.
This was also reflected in the Canadian cryptocurrency miner Hive Blockchain’s revenue, which halved to $14.3 million in Q3 as compared $29.6 million total it made in the previous three-month period.
Hive Blockchain’s Q3 Result
According to the official report, Hive said hedging its energy contracts, selling power back to the grid, and optimizing its operating capacity to focus on maximum profit per KWHR helped it realize a profit from mining operations in the third quarter of 2022.
During this period, it reportedly mined 787 Bitcoin, with a 25% Gross Mining Margin representing $3.62 million of income from mining operations.
The Vancouver-based cryptocurrency miner recorded a net loss of over $90 million as a result of the “impairment from the value of ASIC and GPU chips declining with the drop in Bitcoin and Ethereum prices and the mark-to-market Bitcoin HODL position.”
Moreover, the falling crypto prices considerably affected its gross mining margin, which fell by 77% to $3.6 million in Q3 2022 from $15.9 million in the same period in the previous year.
Ethereum Mining Out of the Picture
Q3 2022 was the first quarter that the company did not mine any ETH following the Merge upgrade in September. Hive’s Executive Chairman Frank Holmes remains optimistic even as mining the world’s largest altcoin was out of the picture. Touching upon the subject, Holmes said,
“We are sad to see the higher margin from mining Ethereum gone however our HPC strategy which has taken longer to roll out is now growing rapidly on a month-over-month basis. We are happy to share that our robust growth is scalable and could potentially increase 10x fold over the next year as the demand for our high-quality chips due to the huge global demand for Ai projects like GPT CHAT, medical research, machine learning, and rendering.”
Post Ethereum-Merge, Hive resorted to selling energy back to the grid and repurposing its GPUs to mine Bitcoin. It also upgraded the existing fleet of ASICs to improve overall efficiency. Holmes believes that the company’s low coupon fixed debt, attractive green renewable energy prices, and high-performing energy-efficient ASIC and GPU chips will further aid in navigating through the crypto winter.
This article first appeared at CryptoPotato