Hive Digital Shares Soar 7.5% On Record Quarterly Revenue
Hive Digital shares surged 7.5% yesterday after the Bitcoin mining company reported record quarterly revenue.
It said revenue for the quarter ending Sept. 30 soared 285% from a year earlier to $87.3 million, and was also up 91% from the previous quarter.
Executive chairman Frank Holmes said that despite Bitcoin’s hashprice only rising about 25% from a year earlier, the stellar results were due to ”our aggressive hashrate expansion.”
Hive Digital share price (Source: Google Finance)
Shares rose another 0.56% in pre-market trading, helping the company’s stock rack up gains of 24% so far this year..
Since reaching an all-time high (ATH) above $126K at the start of October, BTC’s price has plunged over 27%. It also dropped below $90K in the past 24 hours, CoinMarketCap data shows.
Hive Digital Sees Surge In Number Of BTC Mined Even As Difficulty Soared
The company reported mining 717 Bitcoin in the latest quarter, representing a 76.6% increase.
It recorded a 101.2% surge in its digital currency mining revenue, which came in at $82.1 million.
That was even as the Bitcoin network difficulty jumped 21.4% quarter-over-quarter.
It also reported a net loss of $15.8 million for the quarter, but said that this was “driven by the two-year depreciation” of Bitcoin mining machines used in its expansion efforts in Paraguay.
With that expansion, the company said that it completed 300 MW of new capacity in Paraguay within six months and has secured a path to 400 MW via a power purchase agreement.
This comes after the company announced a 100 MW expansion in Yguazú recently.
Despite the net loss, Hive Digital reported ending the quarter with $47 million in cash and digital currencies on its balance sheet.
Hive Digital’s AI Arm Achieves Record Quarterly Revenues
In addition to the strong crypto mining revenues, the company reported that its AI-focused computing arm achieved record revenues of $5.2 million, a 175% increase from the same period a year earlier.
Other Bitcoin mining firms have expanded into AI amid the soaring network difficulty and the continued drop in BTC’s price.
Recently, Bitfarms announced that it would shut down its crypto mining business over the next two years to pivot to AI. In the announcement, the company’s CEO Ban Cagnon said an AI pivot was the best option for most US-based miners.
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