HIVE Digital Provides Recap of Calendar Year 2023 Mining 3,260 Bitcoin
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Insights
The reported doubling of HIVE Digital Technologies Ltd.'s hashrate from 2 EH/s to 4 EH/s within a single calendar year is a significant operational milestone, indicating a robust expansion in the company's Bitcoin mining capabilities. This operational growth directly correlates with the company's revenue potential, given the linear relationship between hashrate and expected Bitcoin earnings, assuming all other factors remain constant. The 100% increase in mining difficulty over the same period, however, suggests that the company's efficiency improvements are necessary to maintain its competitive edge in a rapidly evolving industry.
Moreover, the company's strategic decision to hold 1,704 BTC aligns with the common industry practice known as 'HODLing', which can be seen as a bullish stance on the future value of Bitcoin. This strategy, particularly ahead of the anticipated Bitcoin Halving event in April 2024, could significantly impact the company's balance sheet. The Halving is expected to reduce the daily Bitcoin block reward from 900 to 450, potentially increasing the value of existing holdings if demand remains constant or increases. Nonetheless, this strategy carries the inherent risk of Bitcoin's price volatility, which could lead to substantial balance sheet fluctuations.
HIVE's maintenance of approximately 1% of the global Bitcoin mining network share is an indicator of its stable position within the market. In the context of the total annual block rewards, HIVE's production of 3,260 Bitcoin is in line with its network share, showcasing operational efficiency. The company's forward-looking investment in ASIC technology, with the installation of Bitmain S19k Pro Antminers and the upcoming Bitmain S21 Antminers, is expected to further enhance its mining efficiency, indicated by the projected average fleet efficiency improvement to 25 J/TH.
It is crucial to note that the cryptocurrency mining industry is heavily influenced by technological advancements and energy costs. The efficiency of 28.7 J/TH and the expected improvement to 25 J/TH place HIVE favorably in the industry, as lower joules per terahash (J/TH) indicate more efficient energy use for mining operations. This can lead to reduced operational costs and potentially higher profit margins, assuming stable or increasing Bitcoin prices. Yet, the substantial capital expenditures for such advanced mining equipment must be considered when evaluating the company's financial health and future profitability.
The dynamics of Bitcoin mining difficulty and its implications for HIVE Digital Technologies Ltd. are critical in understanding the company's performance and future prospects. Mining difficulty, which adjusts roughly every two weeks, ensures that the time between blocks remains at approximately 10 minutes, despite fluctuations in global hashrate. The 100% increase in difficulty indicates a proportional increase in global competition, necessitating higher computational power to maintain the same level of Bitcoin production.
Given the upcoming Bitcoin Halving, which will slash block rewards by half, HIVE's strategy to enhance its mining infrastructure and efficiency is timely. The Halving event typically leads to a shakeout of less efficient miners due to the reduced profitability of mining operations. HIVE's proactive measures may not only cushion against the reduced rewards but also position the company to capture a larger market share if competitors are forced to exit the market. This strategic positioning, however, must be weighed against the volatility of Bitcoin prices, which could dramatically alter the return on investment for the newly installed mining equipment.
This news release constitutes a "designated news release" for the purposes of the Company's amended and restated prospectus supplement dated August 17, 2023, to its short form base shelf prospectus dated May 1, 2023.
Vancouver, British Columbia--(Newsfile Corp. - January 8, 2024) - HIVE Digital Technologies Ltd. (TSXV: HIVE) (NASDAQ: HIVE) (FSE: YO0) (the "Company" or "HIVE") is pleased to announce the summarized unaudited production figures from the Company's global Bitcoin operations for the 2023 calendar year. Production totaled 3,260 Bitcoin mined, and hashrate increased by
HIVE has maintained approximately
Throughout calendar 2023 the Bitcoin mining network continued to attract more efficient ASIC machines to compete for the 900 new Bitcoin mined per day, as HIVE'S network hashrate grew from approximately 2 EH/s from the beginning of 2023 to approximately 4 EH/s at the end of 2023. Accordingly, Mining Difficulty1 also increased approximately
HIVE ended the 2023 calendar year with approximately
Bitmain S19k Pro Update
HIVE also announces that further to its news releases dated November 14, 2023, and December 4, 2023, all 9,800 of the Bitmain S19k Pro Antminers ordered by the Company have shipped. Currently approximately
In addition, further to its news release dated December 21, 2023, upon the completion of the installation of the 7,000 Bitmain S21 Antminers ordered in December 2023, which will begin in January 2024 and is expected to be completed in June 2024, it is expected that HIVE will have an average fleet efficiency of 25 J/TH and a total of 5.6 EH/s of active mining capacity.
About HIVE Digital Technologies Ltd.
HIVE Digital Technologies Ltd. went public in 2017 as the first cryptocurrency mining company listed for trading on the TSX Venture Exchange with a sustainable green or renewable energy focus. HIVE's electricity is sourced from hydro and geothermal facilities in Sweden, Canada and Iceland.
HIVE is a growth-oriented technology stock in the emergent blockchain industry. As a company whose shares trade on major stock exchanges, we are building a bridge between the digital currency and blockchain sector and traditional capital markets. HIVE owns green energy-powered data centre facilities in Canada, Sweden, and Iceland, where we endeavour to source green energy to mine digital assets such as Bitcoin on the cloud. Since the beginning of 2021, HIVE has held in secure storage the majority of its treasury of BTC derived from mining rewards. Our shares provide investors with exposure to the operating margins of digital currency mining, as well as a portfolio of Bitcoin. Because HIVE also owns hard assets such as data centers and advanced multi-use servers, we believe our shares offer investors an attractive way to gain exposure to the cryptocurrency space.
We encourage you to visit HIVE's YouTube channel here to learn more about HIVE.
For more information and to register to HIVE's mailing list, please visit www.HIVEdigitaltechnologies.com. Follow @HIVEDigitalTech on Twitter and subscribe to HIVE's YouTube channel.
On Behalf of HIVE Digital Technologies Ltd.
"Frank Holmes"
Executive Chairman
For further information please contact:
Frank Holmes
Tel: (604) 664-1078
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release
Forward-Looking Information
Except for the statements of historical fact, this news release contains "forward-looking information" within the meaning of the applicable Canadian and United States securities legislation and regulations that is based on expectations, estimates and projections as at the date of this news release. "Forward-Looking information" in this news release includes but is not limited to: business goals and objectives of the Company; the unaudited results of operations for the 2023 calendar year; the acquisition, deployment and optimization of the mining fleet and equipment, in particular the delivery of the 9,800 Bitmain S19k Pro Antminers the Company has ordered and the delivery and installation of the 7,000 Bitmain S21 Antminers; the volatility of global network mining difficulty; the continued viability of its existing Bitcoin mining operations; and other forward-looking information concerning the intentions, plans and future actions of the parties to the transactions described herein and the terms thereon.
Factors that could cause actual results to differ materially from those described in such forward-looking information include, but are not limited to, the volatility of the digital currency market; the volatility of global network mining difficulty; the Company's ability to successfully mine digital currency; the Company may not be able to profitably liquidate its current digital currency inventory as required, or at all; a material decline in digital currency prices may have a significant negative impact on the Company's operations; the regulatory environment for cryptocurrency in Canada, the United States and the countries where our mining facilities are located; economic dependence on regulated terms of service and electricity rates; the speculative and competitive nature of the technology sector; dependency on continued growth in blockchain and cryptocurrency usage; lawsuits and other legal proceedings and challenges; government regulations; the global economic climate; dilution; future capital needs and uncertainty of additional financing, including the Company's ability to utilize the Company's at-the-market equity offering program (the "ATM Program") and the prices at which the Company may sell Common Shares in the ATM Program, as well as capital market conditions in general; risks relating to the strategy of maintaining and increasing Bitcoin holdings and the impact of depreciating Bitcoin prices on working capital; the competitive nature of the industry; currency exchange risks; the need for the Company to manage its planned growth and expansion; the effects of product development and need for continued technology change; the ability to maintain reliable and economical sources of power to run its cryptocurrency mining assets; the impact of energy curtailment or regulatory changes in the energy regimes in the jurisdictions in which the Company operates; protection of proprietary rights; the effect of government regulation and compliance on the Company and the industry, the introduction of proposed cryptocurrency regulatory legislation in the United States and other countries; network security risks; the ability of the Company to maintain properly working systems; reliance on key personnel; global economic and financial market deterioration impeding access to capital or increasing the cost of capital; share dilution resulting from the ATM Program, private placements of the Company's securities and from other equity issuances; the construction and operation of facilities may not occur as currently planned, or at all; expansion may not materialize as currently anticipated, or at all; the digital currency market; the ability to successfully mine digital currency; revenue may not increase as currently anticipated, or at all; it may not be possible to profitably liquidate the current digital currency inventory, or at all; a decline in digital currency prices may have a significant negative impact on operations; an increase in network difficulty may have a significant negative impact on operations; the volatility of digital currency prices; the anticipated growth and sustainability of electricity for the purposes of cryptocurrency mining in the applicable jurisdictions; the inability to maintain reliable and economical sources of power for the Company to operate cryptocurrency mining assets; the risks of an increase in the Company's electricity costs, cost of natural gas, changes in currency exchange rates, energy curtailment or regulatory changes in the energy regimes in the jurisdictions in which the Company operates and the adverse impact on the Company's profitability; the ability to complete current and future financings, any regulations or laws that will prevent the Company from operating its business; historical prices of digital currencies and the ability to mine digital currencies that will be consistent with historical prices; an inability to predict and counteract the effects of COVID-19 on the business of the Company, including but not limited to the effects of COVID-19 on the price of digital currencies should there be a resurgence, capital market conditions, restriction on labour and international travel and supply chains; and, the adoption or expansion of any regulation or law that will prevent the Company from operating its business, or make it more costly to do so; and other related risks as more fully set out in the Company's disclosure documents under the Company's filings at www.sec.gov/EDGAR and www.sedarplus.com.
The forward-looking information in this news release reflects the current expectations, assumptions and/or beliefs of the Company based on information currently available to the Company. In connection with the forward-looking information contained in this news release, the Company has made assumptions about the Company's objectives, goals or future plans, the timing thereof and related matters. The Company has also assumed that no significant events occur outside of the Company's normal course of business. Although the Company believes that the assumptions inherent in the forward-looking information are reasonable, forward-looking information is not a guarantee of future performance and accordingly undue reliance should not be put on such information due to its inherent uncertainty. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether because of new information, future events or otherwise, other than as required by law.
1 Difficulty as defined by Blockchain.com as "A relative measure of how difficult it is to mine a new block for the blockchain."
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/193481
FAQ
How many Bitcoin did HIVE produce in 2023?
What was the increase in HIVE's hashrate in 2023?
How much cash did HIVE end 2023 with?
What is HIVE's Bitcoin HODL position?
What is the status of HIVE's Bitmain S19k Pro Antminers installation?
What is the expected total mining capacity of HIVE with the installation of 7,000 Bitmain S21 Antminers?
