[ad_1]
Crypto miner Hive Blockchain reported a more than five-fold year-over-year increase in its revenue from digital currency mining on Monday.
Hive Blockchain generated record revenue of $37.2m (£27.3m) for the three-month period ending 30 June, up 466% from just $6.6m during the comparable period the year prior, according to an earnings filing. Revenue was also up 11% over the prior quarter.
The crypto miner took advantage of a strong quarter that saw Bitcoin rise to an all-time high above $60,000 in April before falling back down to around $35,000 by the end of June. Likewise, Ethereum – which makes up 67% of Hive Blockchain’s digital currency holdings – hit its all-time high breaking above $4,000 in May but declined to around $2,000 by the end of the quarter.
Investing in crypto miners
Investors who may be hesitant to set up separate cryptocurrency wallets and trade on the dedicated exchanges prefer to buy shares of crypto mining companies as an alternative way to add exposure to the cryptocurrency field.
Canadian-based Hive first went public in 2017 on the Toronto Stock Exchange and in July listed in the US via the Nasdaq. Following the earnings report, Hive is trading up 1.43% on the Canadian Ventures Exchange to a price of C$3.54 and is trading 1.62% higher on the Nasdaq to a price of $2.82.
The total universe of crypto companies will continue to increase and already represents a $2.1trn market – larger than the GDP of Italy or Canada, according to a Bank of America report viewed by Capital.com. Hive Blockchain has a market cap of $1.2bn, BofA analysts estimate.
“With a $2tn+ market value and 200mn+ users, the digital asset universe is too large to ignore,” the analysts wrote in the report. “We believe crypto-based digital assets could form an entirely new asset class.”
Financial results
Hive’s costs and expenses increased for the quarter, but the company still managed to increase net income to $18.6m for the three-month period ending in June, up from just $1.8m last year during the same period.
The company mined approximately 221 Bitcoin and 2,572 Ethereum during the quarter, according to a press release. The income from Ethereum is equivalent to 186 Bitcoin, bringing its total equivalent of Bitcoin mined on a daily revenue basis to approximately 407 Bitcoin, or an average of approximately 13.6 Bitcoin equivalent mined per day.
“The first quarter of fiscal 2022 has continued the momentum that we had in fiscal 2021,” said Frank Holmes, Hive Blockchain’s interim executive chairman. “It’s been an incredible year for Hive. Despite the effects of Covid-19 and associated supply chain issues, we have achieved record results and continued to increase our Ethereum and Bitcoin mining capacity.”
Read more: Riot stock forecast for 2021: is this Bitcoin miner worth your money?
Capital Com is an execution-only service provider. The material provided on this website is for information purposes only and should not be understood as an investment advice. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents. We do not make any representations or warranty on the accuracy or completeness of the information that is provided on this page. If you rely on the information on this page then you do so entirely on your own risk.
[ad_2]
