Crypto miner hive blockchain posted net loss of $90.4m for q3 2022

Crypto miner hive blockchain posted net loss of $90.4m for q3 2022
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Crypto mines have seen serious losses in the past year as prices have gone south. A number of notable space players went bankrupt, while others had to take cost-saving steps and close branches.

It was also reflected in blockchain revenues from the Canadian cryptocurrency mine, halved to $14.3 million in the third quarter, up from a total of $29.6 million in the previous three months.

Q3 result from Hive Blockchain.

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 would have mined 787 bitcoin, with a 25% gross mining margin accounting for $3.62 million in revenues from mining activities.

Vancouver's cryptocurrency fighter has lost more than $90 million in net losses as result of the "depreciation of the value of ASIC and GPU chips falling with lower Bitcoin and Ethereum prices and the Bitcoin HODL position at the market brand."

Moreover, the price drop of the crypto has significantly affected its mining gross margin, increased from $15.9 million in the same period a year earlier to $3.6 million in the third quarter of 2022.

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 president, Frank Holmes, remains optimistic, although extraction from the world's largest altcoin was excluded. 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 pleased to report that our strong growth is scalable and could increase by a factor of 10 in the coming year as the demand for our high quality chips because of the huge worldwide demand for artificial intelligence 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 has also improved the existing Asian fleet to improve overall efficiency. Holmes believes the company's low-coupon fixed debt, attractive prices for green renewable energy, and energy-efficient, high-performance ASIC and GPU chips will help navigate through the crypto winter.

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