cryptoninjas.net
HIVE Blockchain Technologies Ltd. (HIVE), an operator of cryptocurrency mining facilities, today announced its results for the fourth quarter and full-year ended March 31, 2019 (all amounts in US dollars, unless otherwise indicated).
The company realized the benefits of cheaper mining hardware costs along with Bitcoin prices increasing from $3,826 at the start of 2019 to highs of nearly $14,000 in June 2019. Similarly, Ethereum started the year at $130 and exceeded $330 in June 2019.
“Over the past year, HIVE has undergone significant changes which have improved transparency and accountability from strategic partners which will allow us to better manage our business. We weathered a challenging period for cryptocurrency and blockchain companies as the value of Bitcoin and Ethereum underwent tremendous erosion of value causing a massive fall in the cost of computing equipment. However, we opportunistically added Bitcoin capacity at attractive financial terms. Since becoming interim CEO and adding a full-time CFO, we have restructured the company to strengthen our operational control of HIVE and improved our cost structure. There is more to be done but I am certain that the work done during the fiscal year and throughout 2019 has better positioned the company for growth. We are pleased by the financial results from our 300 Petahashes of Bitcoin mining capacity and the progress we have seen in our Ethereum mining following the restart of Sweden with Blockbase, our new operational partner, subsequent to the end of the 2019 fiscal year.”
– Frank Holmes, Interim Executive Chairman of HIVE
FY 2019 Highlights
- Generated revenues of $31.8 million, a 143% increase over FY2018, with a gross mining margin of $7.0 million, from the mining of digital currencies;
- Mined over 82,000 newly minted Ethereum during the year ended March 31, 2019, representing an increase of 329% over prior year production, despite a shutdown of the facility in Sweden during a portion of the year;
- And mined 1,751 newly minted Bitcoin during the year ended March 31, 2019. The company did not mine Bitcoin in the prior year;
- Recognized a non-cash impairment charge of $90.9 million related to data center equipment, SHA-256 ASIC capacity, and land development rights in Norway;
- Incurred a loss of $137.8 million for the year;
- Increased its mining capacity over the prior year by 318% by adding an additional 7 MW of data center equipment and 300 PH of SHA-256 ASIC capacity; and
- Diversified its product range with the addition of cloud-based Bitcoin mining.
Financial Review
For the year ended March 31, 2019, HIVE’s gross mining margin was 22%. Fourth-quarter income from digital currency mining was produced from an average of 14.0 MW of GPU production capacity, and 300 PH of Cloud Mining capacity, as of March 31, 2019. Below is a summary of the HIVE’s income and gross mining margin:
