According to its second quarter (ending Sept. 30) earnings presentation released Nov. 15, Vancouver-based digital asset mining company Hive Blockchain’s revenue fell 44% year-over-year to $29.6 million. During the same period, the company’s net income also declined from $59.8 million in the year-ago quarter to a loss of $37 million.
Hive Blockchain’s net profit was significantly higher than its revenue in the second quarter of 2022, as the company also recognized more than $22 million in gains on the Bitcoin (BTC) and Ether (ETH) it mined . Although the company did not incur significant capital losses on parts in the second quarter of 2023, it did, however, record an impairment charge of $26.2 million for its mining rigs.
The company’s losses appear to have escalated even as its Bitcoin mining capabilities have increased further. Year-over-year, Hive Blockchain mined 31% more BTC than in Q2 2022 for a total of 858 coins, which is even more valuable after representing a 15.9% decline in year-over-year of its ETH mining, which stood at 7,309 coins in the quarter.
The overall increase in production was attributed to the opening of the company’s New Brunswick Bitcoin mining facility in the last 12 months, which brought more than 17,300 miners of specific ICs online. application (ASIC). Expressing his optimism for the company’s operations, Executive Chairman Frank Holmes said:
“Strategically, we haven’t borrowed expensive debt against our mining equipment or pledged our Bitcoins for expensive loans, so our balance sheet remains healthy to weather this storm. We believe our low coupon fixed debt; attractive prices for green renewables and energy-efficient ASIC chips will help us get through this crypto winter.
However, the company warned of higher operating expenses in the future due to record mining difficulties. Currently, Hive Blockchain encompasses around 0.85% of the Bitcoin network hash rate. At the end of the quarter, Hive Blockchain reported holding 1,116 BTC, worth $48.4 million, and 25,154 ETH, worth $74.7 million, on its balance sheet.