Canadian BTC Miner HIVE's Revenue Halves from Record High

<p>HIVE
Blockchain Technologies Limited, the Canada-based publicly-traded
company that mines pioneer cryptocurrency, <a href="https://www.financemagnates.com/terms/b/bitcoin/">Bitcoin</a>, saw its revenue plunge by
roughly 50% at the end of its 2023 fiscal year ended March 31. The
Nasdaq-listed firm’s revenue came in at $106.3 million, tumbling from <a href="https://www.globenewswire.com/news-release/2022/07/20/2482356/0/en/HIVE-Achieves-Record-Annual-Revenue-Ended-March-31-2022-of-211-Million-and-Earnings-of-79-Million-with-a-545-Growth-in-BTC-Mining-Hashrate.html" target="_blank" rel="follow">a
record-high of $211 million</a> from the previous fiscal year.</p><p>HIVE, which
<a href="https://www.newsfilecorp.com/release/171991/HIVE-Achieves-Annual-Revenue-Ended-March-31-2023-of-106-Million-with-2332-Bitcoin-on-the-Balance-Sheet-and-Mines-3258-Bitcoin-in-2023-Fiscal-Year" target="_blank" rel="follow">released</a>
the latest financial performance figures today (Friday), said the sharp decline
is “primarily due to the fall in the Bitcoin price and increase in the mining
difficulty of <a href="https://www.financemagnates.com/terms/e/ethereum/">Ethereum</a> and Bitcoin resulting from continued growth in global
mining operations.”</p><p>Tough
Market Conditions Impact HIVE’s Metrics </p><p>Using
application-specific integrated circuit (ASIC) miners, which are specialized computers used to
solve the complex mathematical problems required to add new blocks to the Bitcoin
blockchain, HIVE
produced 3,258 bitcoins in the fiscal year 2023. The figure represents a 37%
increase from the 2,368 BTCs the firm mined earlier in fiscal year
2022. </p><p>Despite the growth in its BTC production, HIVE suffered a net loss of $236.4 million or $2.85
loss per share during the recent fiscal year. This is
a sharp turn from a net
income of $79.6 million or $1.02 gain per share in 2022.</p><p>In addition, HIVE’s
gross operating margin, or the percentage of revenue it retains after all costs
directly related to its core business operations are deducted, came in at $50.4
million, falling 69% from $163.9 million a year earlier. The figure means that the Bitcoin miner retained 48% of its revenue, compared to 76% from the prior fiscal year.</p><p>“Gross
operating margin is directly impacted by digital currency prices and network
difficulties as this impacts revenue from mining operations,” HIVE explained.
“The decrease is mainly attributed to the decrease in Bitcoin price and an
increase in the Bitcoin network difficulty versus the prior year, combined with
the company not
mining Ether <a href="https://www.financemagnates.com/cryptocurrency/news/ethereum-merge-goes-live-eth-touches-1600/" target="_blank" rel="follow">since
the merge</a> on September 15, 2022.”</p><p>HIVE operates blockchain data centres
that utilize green energy sources to mine and secure various digital currencies. However, the negative market conditions affected the firm’s digital
currency assets, which stood at $65.9 million as of
March 31, 2023. During the
same period last year, the company had $170 million in crypto assets.</p><p>Bitcoin's
Recent Upward Trend</p><p>While BTC pulled down HIVE’s financial metrics in the recent fiscal year,
the prices of the foremost digital asset have rallied in recent months, touching $30,000in early April. This was BTC’s highest
market price since mid-2022. </p><p>According
to CoinMarketCap, BTC <a href="https://coinmarketcap.com/currencies/bitcoin/" target="_blank" rel="follow">currently trades at over $30,200</a>. However,
experts such as Crypto Hedge Fund Manager, Thomas Kralow, believe that the asset’s price will surge in the next 24
hours, potentially
reaching $32,000.
Kralow, who is the Founder of Kralow Capital,
further noted that BTC whales or
large investors are still buying into the current rally, indicating strong demand for
Bitcoin.</p><blockquote><p lang="en" dir="ltr"><a href="https://twitter.com/hashtag/CryptoNews?src=hash&amp;ref_src=twsrc%5Etfw">#CryptoNews</a>: Since <a href="https://twitter.com/hashtag/BlackRock?src=hash&amp;ref_src=twsrc%5Etfw">#BlackRock</a> ETF Filing, Bitcoin Miners Have Sent $1 Billion to Exchanges<a href="https://t.co/mgzHuVVSCd">https://t.co/mgzHuVVSCd</a><a href="https://twitter.com/hashtag/Bitcoin?src=hash&amp;ref_src=twsrc%5Etfw">#Bitcoin</a> miners have sent over $1 billion worth of <a href="https://twitter.com/hashtag/BTC?src=hash&amp;ref_src=twsrc%5Etfw">#BTC</a> to crypto exchanges in the past two weeks, according to analytics firm CryptoQuant</p>— CoinMarketCap (@CoinMarketCap) <a href="https://twitter.com/CoinMarketCap/status/1674782842952503298?ref_src=twsrc%5Etfw">June 30, 2023</a></blockquote><p>“Additionally,
we see an upward trend in Bitcoin's on-chain accumulation. After a period of
lower activity, there's now less Bitcoin available on exchanges, suggesting a
decrease in supply,” Kralow told <a href="https://www.financemagnates.com/" target="_blank" rel="follow">Finance Magnates</a>. “Considering the upcoming
halving in 2024 and the growing interest from big investors in China, it indicates
a positive long-term outlook for Bitcoin's price.”</p>

This article was written by Solomon Oladipupo at www.financemagnates.com.