HIVE Increases Bitcoin Production in First Full Quarter Without Ethereum Mining

HIVE Blockchain increased its Bitcoin mining production amid an ongoing crypto winter, boasting an increase of 13% year-over-year.

By Alys Key

Bitcoin "mining" refers to the activity of generating new BTC. Image: Shutterstock

Crypto miner HIVE Blockchain increased its Bitcoin production in the final three months of last year, despite the ongoing crypto winter and the end of its Ethereum mining operations.

The Vancouver-based business mined 787 new Bitcoin in the quarter ending December 31, 2022, an increase of 13% year-on-year. In a statement, the company chalked the higher output up to the completion of its New Brunswick data center.

Even with Bitcoin prices low and mining difficulty increasing, miners like HIVE have continued to produce more Bitcoin.

Last month, for example, mining firm Riot Platforms reported a new all-time high in its BTC production.

Despite the increased production, HIVE brought in just $14.3 million in revenue for the quarter, less than half the $29.6 million total it made in the previous three-month period.

The figures reflected HIVE’s first full quarter without any Ethereum mining revenues, following the protocol’s transition to proof of stake in September in a process known as the “Merge.”

As a result of various factors including the Merge and a drop in crypto prices, HIVE posted a net loss of $90.4 million for the quarter.

HIVE copes with headwinds

Despite the loss, executive chairman Frank Holmes remained optimistic. That’s because the company is readying to launch its HIVE Performance Cloud (HPC), a platform for accelerated cloud computing using green energy.

Its launch is slated for the second quarter of 2023, and according to Holmes, it could bring in business from beyond the world of blockchain, even tapping into the first-growing AI sector.

“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,” he said.

The results cover a period that saw many crypto miners struggling for solvency, with the likes of Compute North and Core Scientific filing for bankruptcy last year. Several firms also turned to dumping their Bitcoin reserves to shore up their balance sheets.

In contrast, HIVE has increased its Bitcoin holdings by 30% year-on-year, ending 2022 with 2,372 Bitcoin.

The company also uses a grid balancing strategy to earn extra income. By selling its power back to the grid during times of peak demand during December, the company brought in revenue equivalent to mining 184 Bitcoin, according to its update for that month.

However, in January of this year, grid balancing income was only worth the equivalent of 10 Bitcoin.