Bitcoin Miner HIVE Digital Buys BTC Dips, Stock Jumps 9%

by

As a researcher with experience in the Bitcoin mining industry, I find HIVE‘s recent financial report and expansion plans quite intriguing. While many Bitcoin miners are experiencing capitulation due to the market turbulence, HIVE is taking advantage of the situation by buying the dips and increasing its Bitcoin holdings.

As an analyst, I’ve noticed a trend of Bitcoin miners experiencing difficulties in recent weeks, leading to what’s been referred to as capitulation. However, contrary to this trend, HIVE Blockchain Technologies, a Canadian Bitcoin miner, has taken advantage of the price dips by purchasing 2,503 additional Bitcoins. According to their June financial report, these newly acquired Bitcoins have been added to the company’s balance sheet and reserves.

In spite of the recent wave of Bitcoin miners selling off their cryptocurrency holdings due to the dropping price reaching a low of $54,500 today, HIVE Blockchain Technologies maintains optimism for Bitcoin’s future.

In the final month of June 2024, HIVE successfully mined a total of 119 Bitcoins. Simultaneously, its Bitcoin holdings grew by 2%, resulting in a current balance sheet holding of approximately 2,496 Bitcoins. Throughout this period, HIVE consistently operated at an average Bitcoin mining capacity exceeding 4.7 Exahash (“EH/s”).

Starting from July 7, 2024, HIVE holds a total of 2,503 Bitcoins in their long-term investment portfolio. The current value of these Bitcoins surpasses $140 million. This significant Bitcoin holding sets HIVE apart from its competitors, making its enterprise value particularly appealing. Frank Holmes, the Executive Chairman of HIVE, commented on this progress.

For the past 18 months, our management team has excelled in data center efficiency, keeping costs low enough to mine Bitcoin with among the smallest general and administrative expenses. Furthermore, they have minimized shareholder dilution. We are thrilled to announce that we have added more Bitcoin to our holdings, now totaling 2,496 coins on our balance sheet.

HIVE Remains Robust Despite Market Turbulence

Aydin Kilic, the CEO of HIVE, discussed the company’s growth plans in addition to announcing that the remaining Bitmain S21 orders are prepared for shipping. An upgrade of around 1,150 S21 Pro miners is included in this shipment, derived from HIVE’s initial December order.

I, as an analyst, can confirm that Kilic stated we are now prepared to dispatch the recently acquired 1,000 S21 Pro miners. By the close of July, our team will install this newest addition to our mining fleet.

I anticipate that a total of 2,150 S21 Pro miners, which are currently pending, will be shipped within the next week. This addition will boost HIVE‘s operational hashrate to 5.5 EH/s once installed. With an efficient global fleet, we can expect this new setup to consume only 24.5 Joules per Terahash per second. These miners are projected to be set up before the month of July comes to a close.

As a crypto investor, I’ve noticed an impressive surge in HIVE Digital’s (HIVE) stock price after the recent positive report was released. According to Google Finance, HIVE’s shares on Nasdaq jumped by over 9.5%, reaching $3.34. This uplift in HIVE Digital’s reserves occurred despite many of its competitors experiencing significant pullbacks or “capitulation.”

Bitcoin miners, including TeraWulf and CleanSpark, have been considering strategic mergers to boost profits amidst the industry’s recent instability triggered by the Bitcoin halving that occurred in April.

Read More

2024-07-08 14:28