In the realm of financial markets, the recent performance of HIVE Digital Technologies Ltd. (NASDAQ: HIVE) shares has captured considerable attention, showcasing a notable surge of 19.89% during the preceding trading session, ultimately settling at $4.34. This bullish momentum appears primed to endure, as evidenced by a further uptick of 3.92% to $4.51 observed in today’s pre-market activity. The ascent in HIVE stock closely followed the release of its financial results.
HIVE Digital (HIVE) unveiled its earnings report for the third quarter ending on December 31, 2023. During this period, HIVE achieved revenues of $30.1 million, propelled by the mining of 830 Bitcoin with a 38% Gross Operating Margin, reflecting $11.3 million in income from digital currency mining operations. Notably, this also signifies a remarkable 146% increase in Gross Operating Margin from the preceding quarter’s figure of $4.6 million.
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The buoyancy in Bitcoin mining economics this quarter can be attributed to the rally in Bitcoin, potentially influenced by developments surrounding Bitcoin ETFs in the United States and the subsequent SEC approval on January 10, 2024. Additionally, the Company garnered $0.9 million in revenue this quarter from its GPU-powered High Performance Computing (“HPC”) business unit, leveraging GPUs for AI computations, including inference and fine-tuning of large language models (LLMs).
HIVE underscores that its production of 830 Bitcoin this quarter marks a 5% year-over-year increase, compared to mining 787 Bitcoin in the corresponding period last year. This uptick results from bolstering HIVE’s global hashrate to over 4 Exahash per second (“EH/s”), amidst an 82% surge in Bitcoin mining network difficulty, indicating heightened competition with more efficient equipment for the same daily Bitcoin production opportunity of 900.
Consequently, earning 9 Bitcoin per day translates to possessing 1% of the hashrate of the entire Bitcoin mining network. On average this quarter, HIVE mined 9.0 Bitcoin per day, maintaining an average operating hashrate of 4.01 EH/s, signifying a 10% increase over the previous quarter’s average hashrate of 3.66 EH/s. HIVE remains steadfast in its commitment to strategically acquiring new ASIC machines from cash flow and prudently managing its balance sheet.
