This HIVE Blockchain Technologies Ltd Review will provide you with a general idea about this cryptocurrency mining company. The company has a market cap of $113M USD and a strategic partnership with Blockbase Group DWC-LLC. Its strategy is growth-oriented. Genesis, a provider of cryptocurrency mining hashpower services, is still a major shareholder in the company. It holds 8.43% of HIVE, or 31,003,316 shares, on a non-diluted basis as of March 31, 2021.
HIVE Blockchain Technologies Ltd is a cryptocurrency mining company
A Canadian company, HIVE Blockchain Technologies Ltd is a cryptocurrency miner with data centers in Sweden, Iceland, and Canada. It owns and operates a fleet of over 6,000 cryptocurrency mining equipments and is focused on the mining and selling of digital currencies. Investors can gain exposure to the operating margins of digital currency mining by purchasing shares in the company. It also holds a portfolio of crypto-coins.
Several investors have expressed their interest in HIVE’s stock because of its diversified portfolio. The cryptocurrency mining company is able to generate profit even while facing the challenges of a declining market. Its mining economics are strong on a historical basis and profitable across the board. Hence, investors can purchase shares in HIVE without any worries. However, HIVE has some risks related to its business model.
Although HIVE’s share price has grown over the past five years, the cryptocurrency mining company has not yet provided enough information to compute its payout ratio or determine if its dividends are covered by earnings. Further, HIVE has not disclosed its major shareholders or whether insider trading is prevalent. Financial data on HIVE Blockchain Technologies Ltd is provided by Standard & Poor’s Capital IQ, a financial database.
In Q1 2020, HIVE’s aggregate operating hash capacity was 1 Exahash. This translates to 225 Bitcoin per month, at current difficulty levels. HIVE expects this number to increase with the increasing scarcity dynamics of bitcoin. In addition to increasing its mining capacity, HIVE also purchased 3,000 WhatsMiner miners from MicroBT, which will be delivered in 12 equal tranches of 250 each. In total, HIVE anticipates adding 3,000 WhatsMiner miners by 2022, which translates to about 24.5 PH/s per month.
It has a strategic partnership with Blockbase Group DWC-LLC
HIVE Blockchain, a Swedish cryptocurrency mining company, announced a strategic partnership with Blockbase Group DWD-LLC, which will provide the company with software and maintenance services for its Sweden-based GPU mining operations. The company’s expertise in operational software programming and management will help it streamline its mining operations. The company also entered into direct agreements with local suppliers to reduce costs. XRP Capital Management aims to strengthen its competitive position in the industry and become a leading technology-driven blockchain and metaverse company.
The company has made assumptions about the relationship with Blockbase and Genesis, including the expected enhanced efficiency, reduced costs, full transparency of costs, the completion and filing of Annual Filings, the duration of the MCTO, and other factors that could affect the company’s future performance. Further, it has made assumptions regarding taxation authorities and debt holders. It expects to obtain all necessary licenses and permits to operate its operations in the Sweden and the U.S., and will maintain compliance with taxation laws.
It has a market cap of $113M USD
HIVE Blockchain Technologies Ltd. has a market cap of $113 million USD. The company was formerly known as Leeta Gold Corp., a gold mining company in Canada. This year, however, they are moving into cryptocurrency mining, partnering with Genesis Mining, which is the oldest cloud mining provider. Genesis operates mining facilities in China, Iceland, and Europe. Its shares have increased in value, but investors should tread carefully until the technology is ready for prime time.
It is a growth-oriented company
In an era when institutional investors have a strict policy not to invest in stocks with a lower price or market capitalization, HIVE has emerged as a growth oriented company with a strong outlook. While HIVE’s share price is expected to increase irrespective of market forces, it is still not clear if its profile will expand further due to stock consolidation. But, Aditi takes a fundamental approach in analyzing equities.
Investors should consider the company’s strong position in the digital currency landscape and its exposure to mining margins. This is because HIVE holds a portfolio of crypto-coins on its balance sheet. At March 31, 2020, the value of these cryptocurrencies was $3.4 million, while at December 31, 2020, the value was $15 million. In addition, HIVE has made several non-material investments in private and public companies.
As of December 2018, HIVE’s combined liquid Bitcoin and Ethereum (ETH) reserves were valued at over $168 million. This is a four-fold increase from the previous year. Revenues from digital currency mining increased by 397%, primarily due to an increase in cryptocurrency prices. The acquisition of Quebec and Atlantic facilities also led to an increase in production. The company also purchased miners for mining facilities.
Although HIVE is a growth oriented company, the crypto industry has been in turmoil since its initial listing on the Nasdaq in January. In addition to investing in Network Entertainment, HIVE completed a share swap with DeFi Technologies in April 2021, where it acquired 5% of the company in exchange for 1% of the shares. In October, HIVE appointed Diana Biggs as its Swiss board member and Johanna Thornblad as its Sweden president. In 2017, HIVE became the first cryptocurrency mining company to be publicly traded on a major exchange. Moreover, it is currently one of the world’s most accessible stock exchanges.
It uses green energy
The Vancouver-based blockchain infrastructure company, HIVE Blockchain Technologies Ltd., is one of the first publicly traded crypto mining companies. Its data centres in Sweden, Iceland, and Canada are powered by green energy and use considerably less energy than traditional mining methods. The company is working to be listed on the Nasdaq Capital Markets by 2021 and is focused on building long-term shareholder value. Currently, the company’s interim CEO is Canadian businessman Frank E. Holmes.
The company’s operations include mining, producing, and selling digital currencies. The company owns green energy-powered data center facilities and mintes cryptocurrencies like Ethereum. The company’s data centers have a total BTC and ETH HODL balance of 15,914 and 2,832 ETH, respectively. HIVE Blockchain Technologies Ltd is focusing on the use of green energy to update its operational scaling. It has already mined ETH with GPUs and generated a total of 2,537 ETH.
In addition to incorporating new technology, HIVE is working with Intel Corporation to manufacture its bitcoin mining equipment. The company will incorporate high-performing and energy-efficient ASIC chips from Intel into its customized mining equipment. “The chips will enable HIVE to further expand our green energy mining capabilities,” said HIVE’s President and COO, Aydin Kilic. The two companies will continue to collaborate closely on development and production of new bitcoin mining hardware.