Hive Blockchain is one of the most popular crypto currency miners in the world thanks in part to the 2021 crypto boom as well as smart decision making by the executive team. As a result of their recent success, the company has benefited greatly from a rising stock price and a lot of asset appreciation, making Hive Blockchain one of the largest crypto currency miners in the world based off of market capitalisation. So it’s worth asking the question, what can we expect the company to achieve in the next twelve months?
So long as the price of Bitcoin and Ethereum remains somewhat steady while slowly but surely increasing over timer, Hive will benefit greatly. As of writing this article, the company has a total mining capacity of 2,000 petahash, enough capacity in fact to mine approximately 200 freshly minted Bitcoin each month or more than 23,000 Ethereum. Hive do currently mine a seriously large amount of Ethereum as their chosen crypto currency, but those numbers are really magnificent and should continue to provide the company with more revenue each and every quarter for the foreseeable future.
Hive blockchain have already got plans to continue to increase their bitcoin mining capacity, with a new step goal of trying to reach a overall mining capacity of 2,400 PH/s by the end of the year. To achieve such an improvement, they are reaching out to two different suppliers in order to pre-order the new rigs that they require so that they don’t miss out on reaching this goal due to the global shortage of chips which is making it a whole lot more difficult being a mining company at the moment. All things considered this is great news and puts the company on the right foot.
HODL More Crypto
Hive Blockchain’s strategy is to continue to hold a mixture of both Ethereum and Bitcoin in cold wallets and allow for them to appreciate over time. They do currently sell the assets they mine to pay for operations which makes sense as it allows for them to remain sustainable without having to go to the markets to raise capital.
As of writing this article, HIVE have in total 20,030 Ethereum coins and 320 Bitcoin. Converting these numbers in dollar terms, Hive blockchain hold over $60 million in crypto currency assets on their balance sheet. These are really impressive numbers (however not the highest we’ve seen).
The company should now continue to HODL more of the currency they mine going forward thanks to the price actions of the digital assets in recent months. The mining margin will come down meaning that it will take few coins to sell to pay for the day to day business needs therefore allows Hive Blockchain to store away more of those precious coins.
Finding Space – New facilities
In recent months, the crypto mining space has been heating up with companies purchasing land in Texas to build large facilities to increase their capacity over the course of the next twelve months. Argo Blockchain for instance used a $100m debt facility to buy land in West Texas where they will be able to harness a 200mw green energy supply to mine bitcoin. Considering some experts in the space believe that green coins will be worth more in the future, these acquisition’s make sense.
We believe that Hive Blockchain will need to make the same move soon. Hive currently have between the three locations they have mining operations in, those being, Canada, Iceland and Sweden a total power supply of 51 megawatts. Although that figure is impressive, it will be dwarfed over the next year by their competition and effectively reduce their market position. We think that it’s inevitable that the company will eventually announce a deal similar to Argo where they will build their own warehouse with a massive power supply at their disposal.
By doing so they will ensure that the company remains front footed, competitive and able to take advantage of the next halving down the road.
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