Crypto miner Hive Blockchain reported a net loss of $90.4 million for the third quarter of 2022
Crypto mining saw heavy losses last year as prices went south. Several notable players in the space went bankrupt, while others had to implement cost-cutting measures and close down branches.
This is also reflected in Canadian cryptocurrency miner Hive Blockchain’s revenue, which halved to $14.3 million in the third quarter compared to a total of $29.6 million in the previous three-month period.
Hive Blockchain’s Q3 Results
According to the official report, Hive said that securing its energy contracts, selling power back to the grid and optimizing operating capacity to focus on maximum profit per KWHR helped it achieve mining profits in the third quarter of 2022.
During this period, 787 Bitcoin were reportedly mined, with a gross mining margin of 25% representing $3.62 million in mining revenue.
The Vancouver-based cryptocurrency miner recorded a net loss of over $90 million as a result of “the write-down from the value of ASIC and GPU chips that fell with the fall in Bitcoin and Ethereum prices and the mark-to-market Bitcoin HODL position. “
Moreover, the falling crypto prices significantly affected the mining gross margin, which fell by 77% to $3.6 million in Q3 2022 from $15.9 million in the same period of the previous year.
Ethereum mining out of the picture
Q3 2022 was the first quarter that the company did not mine any ETH after the September merge upgrade. Hive’s executive chairman Frank Holmes remains optimistic even though mining the world’s largest altcoin was out of the picture. On the subject, Holmes said,
“We are sad to see the higher margin from Ethereum mining gone, but our HPC strategy, which has taken longer to roll out, is now growing rapidly on a monthly basis. We are happy to share that our robust growth is scalable and could potentially increase 10x in the next year as the demand for our high-quality chips due to the huge global demand for Ai projects such as GPT CHAT, medical research, machine learning and rendering.”
After the Ethereum Merge, Hive used to sell energy back to the grid and use their GPUs to mine Bitcoin. It also upgraded the existing fleet of ASICs to improve overall efficiency. Holmes believes the company’s low-coupon fixed debt, attractive green renewable energy prices and high-performance energy-efficient ASIC and GPU chips will further help navigate through the crypto winter.
