Krypto Miner Hive Blockchain recorded a net loss of $ 90.4 million for the third quarter of 2022
Krypto Miner Hive Blockchain recorded a net loss of $ 90.4 million for the third quarter of 2022
In the case of crypto mining, there were severe losses last year than the prices went down. Several well -known players in the industry slid into bankruptcy, while other austerity measures had to take and close branches.
This was also reflected in the turnover of the Canadian cryptocurrency miner's Hive Blockchain, which in the third quarter of $ 14.3 million in halved, compared to $ 29.6 million in the previous three-month period.
Q3 result from Hive Blockchain
According to the official report, Hive said that the protection of his energy contracts, the return of electricity to the network and the optimization of its operating capacity in order to concentrate on the maximum profit per kWhr, to make a profit from the mining operation in the third quarter of 2022.
During this period, 787 Bitcoin was reported with 25 % gross mining margin, which represents $ 3.62 million in income from mining companies.
The cryptocurrency miner based in Vancouver recorded a net loss of over 90 million US dollars as a result of the "impairment by the value of ASIC and GPU chips, which declined with the decline in Bitcoin and Ethereum prices and the Mark-to-Market position of Bitcoin Hodl".
In addition, the falling crypto prices had a significant impact on the gross mining margin, which in the third quarter of 2022 decreased by 77 % to $ 3.9 million in the same period of the previous year.
ether mining from the picture
Q3 2022 was the first quarter in which the company did not dismantle any ETH after the Merge upgrade in September. The CEO of Hive, Frank Holmes, remains optimistic, even if the dismantling of the world's largest old coin was out of the question. Holmes touched the topic and said:
"We are sad that the higher margin has disappeared from the degradation of Ethereum, but our HPC strategy, the introduction of which took longer, is now growing quickly from month to month. We are pleased to be able to tell you that our robust growth can be scalable and may increase ten times the next year, since the demand for our high-quality chip is possible due to the enormous worldwide AI projects such as GPT chat, medical research, machine learning and playback. ”
After the Ethereum merges, Hive used to sell energy to the power grid and convert its GPUs for the breakdown of Bitcoin. The existing ASIC fleet was also upgraded to improve overall efficiency. Holmes believes that fixed debt with a low cupon, the attractive prices for green renewable energies and the powerful, energy-efficient ASIC and GPU chips of the company will continue to help navigate through the crypto winter.
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