A renowned publicly-traded cryptocurrency mining firm, Hive Blockchain, benefited from the ongoing bullish market in virtual assets since this year as the price of the leading cryptocurrency Bitcoin reached new heights.
Within an official report, Mining income for Hive’s fiscal 3rd quarter ended on 31st Dec., touched $13.7 Mln, a 174% hike from an equivalent period a year earlier, when it reported mining income of $5 Mln, per its reported financial statements.
The price of bitcoin increased 3x times in 2020, and Ethereum rose 5x times. Earnings per share: $0.05 USD a share for the quarter, up from $0.01 USD a year earlier. Gross mining margin: Stable at 78% compared to a 77% margin from a year ago.
CFO Darcy Daubaras on Tuesday’s earnings calls that the firm is slowly ramping up its bitcoin mining operations with 165 BTC mined in Q3 and a recent purchase of 10.5k ASIC mining machines. But the lion’s share of operations is dedicated to mining Ethereum [ETH].
“Our bread and butter is Ethereum mining,” Daubaras added earlier on Tuesday’s earnings call.
Hive mined 21,506 ETH in Q3, a small decrease from 23,174 mined over an equivalent period a year ago. Daubaras attributed the drop to the hiked difficulty of mining new data blocks on the Ethereum blockchain. The problem level has doubled over the past year.
The Vancouver-based firm features a present market price of $1.57 Bln after passing the $1 Bln benchmark earlier in January.
In the year so far, shares of Hive have quite doubled, presently trading at C$5.83.