HIVE Blockchain Reports Third Quarter Financial Re
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Posted On: 03/03/2020 8:06:31 AM
HIVE Blockchain Reports Third Quarter Financial Results
Tue March 3, 2020 7:00 AM|Canada Newswire|About: HVBTF
ZUG, Switzerland and VANCOUVER, March 3, 2020
HIVE Blockchain Technologies Ltd. (HVBTF) (TSX.V:HIVE) (OTCQX:HVBTF) (the "Company" or "HIVE"
announces its results for the third quarter ended December 31, 2019 (all amounts in US dollars, unless otherwise indicated).
"I am pleased to report a healthy profit in the third fiscal quarter driven by our ongoing efforts since the end of 2018 to increase transparency, accountability and profitability across our mining operations," said Frank Holmes, Interim Executive Chairman of HIVE. "Notably, our decision to restructure operations at our flagship Ethereum mining facility in Sweden paid off as we generated a strong increase in gross mining profitability vs prior periods under our previous service provider relationship, which ceased in November. Additionally, we benefited during the quarter and subsequently from our prudent decision to suspend Bitcoin cloud mining operations to avoid mining at a loss due to the significant increase in mining difficulty combined with declining Bitcoin prices in the second half of calendar 2019.
"These decisions have strengthened our balance sheet; we also recently lowered our cost base while increasing our cost certainty by entering into hedging arrangements related to our electrical expenses in Sweden. Combined, these will enable us to make appropriate investments to drive future growth.
"We are extremely excited as we look ahead in 2020 and the potential for further improvements to the profitability of our Ethereum mining operations," added Mr. Holmes. "Institutional adoption of blockchain technology, including Ethereum, is rising. And Ethereum market conditions for miners have improved thus far this year: daily block rewards increased in January and coin prices have rebounded significantly over the past few months while the network hash rate has been relatively stable. Additionally, it is anticipated the Ethereum network will implement Programmatic Proof of Work this year, which would effectively eliminate ASIC mining on the network, thereby increasing the relative efficiency of GPU mining facilities such as HIVE's.
"We continue to evaluate expansion opportunities globally, with a preference towards maintaining 100% green energy, and look forward to providing further updates on our progress through the year."
Q3 F2020 Highlights
Generated income from digital currency mining of $5.0 million
Generated gross mining margin of $3.8 million from mining of digital currencies
Mining output of newly minted digital currencies:
- 23,175 Ethereum
- 33,190 Ethereum Classic
- 127 Bitcoin
Generated net income of $3.4 million for the period
Net cash less loans payables decreased to $3.2 million due to cash used in operations, reflecting upfront energy costs paid during the quarter in Sweden for which the Company anticipates receiving energy rebates in the future, with digital currencies assets at $3.4 million, as at December 31, 2019
Working capital increased to $11.8 million
Financial Review
https://seekingalpha.com/pr/17797350-hive-blo...al-results
Tue March 3, 2020 7:00 AM|Canada Newswire|About: HVBTF
ZUG, Switzerland and VANCOUVER, March 3, 2020
HIVE Blockchain Technologies Ltd. (HVBTF) (TSX.V:HIVE) (OTCQX:HVBTF) (the "Company" or "HIVE"
announces its results for the third quarter ended December 31, 2019 (all amounts in US dollars, unless otherwise indicated). "I am pleased to report a healthy profit in the third fiscal quarter driven by our ongoing efforts since the end of 2018 to increase transparency, accountability and profitability across our mining operations," said Frank Holmes, Interim Executive Chairman of HIVE. "Notably, our decision to restructure operations at our flagship Ethereum mining facility in Sweden paid off as we generated a strong increase in gross mining profitability vs prior periods under our previous service provider relationship, which ceased in November. Additionally, we benefited during the quarter and subsequently from our prudent decision to suspend Bitcoin cloud mining operations to avoid mining at a loss due to the significant increase in mining difficulty combined with declining Bitcoin prices in the second half of calendar 2019.
"These decisions have strengthened our balance sheet; we also recently lowered our cost base while increasing our cost certainty by entering into hedging arrangements related to our electrical expenses in Sweden. Combined, these will enable us to make appropriate investments to drive future growth.
"We are extremely excited as we look ahead in 2020 and the potential for further improvements to the profitability of our Ethereum mining operations," added Mr. Holmes. "Institutional adoption of blockchain technology, including Ethereum, is rising. And Ethereum market conditions for miners have improved thus far this year: daily block rewards increased in January and coin prices have rebounded significantly over the past few months while the network hash rate has been relatively stable. Additionally, it is anticipated the Ethereum network will implement Programmatic Proof of Work this year, which would effectively eliminate ASIC mining on the network, thereby increasing the relative efficiency of GPU mining facilities such as HIVE's.
"We continue to evaluate expansion opportunities globally, with a preference towards maintaining 100% green energy, and look forward to providing further updates on our progress through the year."
Q3 F2020 Highlights
Generated income from digital currency mining of $5.0 million
Generated gross mining margin of $3.8 million from mining of digital currencies
Mining output of newly minted digital currencies:
- 23,175 Ethereum
- 33,190 Ethereum Classic
- 127 Bitcoin
Generated net income of $3.4 million for the period
Net cash less loans payables decreased to $3.2 million due to cash used in operations, reflecting upfront energy costs paid during the quarter in Sweden for which the Company anticipates receiving energy rebates in the future, with digital currencies assets at $3.4 million, as at December 31, 2019
Working capital increased to $11.8 million
Financial Review
https://seekingalpha.com/pr/17797350-hive-blo...al-results
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