HIVE Blockchain Reports $90m Loss in Q4 2022 amid Lower Bitcoin Prices

<p>HIVE Blockchain Technologies Ltd. (<a href="https://www.financemagnates.com/tag/hive-blockchain-technologies/" target="_blank" rel="follow">TSX:HIVE</a>), a publicly-listed <a href="https://www.financemagnates.com/terms/c/crypto-mining/" class="terms__main-term" id="b7de0d78-81b9-460d-b33d-311d7d0dff0e" target="_blank">crypto mining</a> company, has published a quarterly report for the three-month period ended 31 December 2022, showing a significant decrease in digital currency production revenue of 51.6% year-over-year (YoY) to $14.1 million.</p><p>HIVE Reports Q4 Financials</p><p>According to Tuesday’s press release, Ethereum’s ‘The Merge’, prolonged cryptocurrency winter, rising mining difficulty and tumbling crypto prices were among the main reasons for the sharp yearly decrease in quarterly revenue.</p><p>HIVE was able to mine 787 BTC in the reported period, rising 13% YoY. In January, the publicly-listed miner <a href="https://www.financemagnates.com/cryptocurrency/hive-blockchain-increases-its-bitcoin-production-mines-4752-btc-in-2022/" target="_blank" rel="follow">showed an overall increase in Bitcoin production statistics for 2022</a> of 18% YoY to 4,752. However, the turbulences mentioned above cut the profit margins down effectively.</p><p>The crypto miner held $39 million in cryptocurrency assets at year-end. The company reported a significant increase in new Bitcoin production difficulty in the fourth quarter, growing 37% to $18,072 compared to $9,894 reported in the previous quarter.</p><p>The net result for the entire quarter translated to a sizable loss of $90 million, compared to the $37 million loss reported in the third quarter of the calendar year 2022. In the three months ending 30 September 2022, <a href="https://www.financemagnates.com/cryptocurrency/hive-revenues-down-45-in-q3-despite-higher-btc-production/" target="_blank" rel="follow">the company reported a 45% decrease in revenue</a>, despite the higher BTC production.</p><p>“Strategically, we have not borrowed expensive debt against our mining equipment or pledged our Bitcoins for costly loans, thus our balance sheet remains healthy to weather this storm. We believe our low coupon fixed debt; attractive green renewable energy prices and high performing energy efficient ASIC and GPU chips will help us navigate through this crypto winter,” Frank Holmes, HIVE’s Executive Chairman, commented.</p><p>Watch the recent FMLS22 panel on reimagining the crypto market structure.</p><p>Gird Balancing to Help HIVE</p><p>According to a separate report from two weeks ago, <a href="https://www.financemagnates.com/cryptocurrency/hive-blockchain-reports-btc-production-and-bets-od-grid-balancing/" target="_blank" rel="follow">HIVE was able to earn $180,000 from balancing the grid</a>, expanding its revenues from direct <a href="https://www.financemagnates.com/terms/b/bitcoin/" class="terms__secondary-term" id="261088a9-0f41-4202-a73c-31f75ba6bd93" target="_blank">Bitcoin</a> mining. The income from the last month’s grid balancing equals the mined value of approximately 10 Bitcoins.</p><p>“Through hedging our energy contracts, selling power back to the grid, and optimizing our operating capacity to focus on maximum profit per KWHR, HIVE has realized profit from mining operations this quarter,” HIVE commented in the quarterly results press release.</p><p>Optimizing energy allocation allows HIVE to boost hashrate numbers or generate additional revenue by returning the resources to the grid. </p><p>Crypto Miners Closed a Strong Year</p><p>HIVE's yearly BTC production statistics coincide with similar numbers published by another publicly-listed crypto company, Bitfarms, which showed a <a href="https://www.financemagnates.com/cryptocurrency/bitfarms-ends-2022-with-50-increase-in-btc-mining/" target="_blank" rel="follow">49,6% YoY increase in Bitcoin mining</a> from 3,453 in 2021 to 5,167 in 2022.</p><p>However, the rising mining statistics failed to compensate for declines in the major asset prices, leading to a sharp drop in overall revenues. They slumped by 37.5% to $9.55 billion in 2022, which was <a href="https://www.financemagnates.com/cryptocurrency/why-bitcoin-miners-made-6-billion-less-in-2022/" target="_blank" rel="follow">$6 billion lower than in the record-breaking 2021.</a></p> This article was written by Damian Chmiel at www.financemagnates.com.

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HIVE Revenues Down 45% in Q3 Despite Higher BTC Production

<p> HIVE Blockchain Technologies Ltd. (<a href="https://www.financemagnates.com/tag/hive-blockchain-technologies/">NASDAQ:HIVE</a>), a cryptocurrency mining company focused on green energy, announced on Wednesday its financials for the third quarter of 2022. Similar to other publicly listed miners, HIVE reported a visible slump in revenue compared to the previous year due to the drop in Bitcoin (BTC) and <a href="https://www.financemagnates.com/terms/e/ethereum/" target="_blank" id="230aa7bc-daf7-4523-af41-90671a2e79de_1" class="terms__main-term">Ethereum</a> (ETH) prices.</p><p class="MsoNormal">According to the press release, HIVE was able to mine 858 BTC and 7309 ETH using clean energy during the previous quarter, achieving revenue of $29.6 million, which translates to a 45% decline compared to $42.9 million reported in the same period year earlier.</p><p class="MsoNormal">HIVE’s Bitcoin production rose by 4.5% quarter-over-quarter (QoQ) and 31% year-over-year (YoY), mainly due to the purchase of 17,300 new ASIC miners expanding the company’s New Brunswick data center facility to 60 MW of power.</p><p class="MsoNormal">The lower <a href="https://www.financemagnates.com/terms/b/bitcoin/" target="_blank" id="261088a9-0f41-4202-a73c-31f75ba6bd93_3" class="terms__secondary-term">Bitcoin</a> prices gross mining profit margin achieved by the mining company stood at $15.9 million, lowering by $41% QoQ from $27 million. It translated into a net loss of $37 million, compared to a net income of $38.9 million in Q3 2021.</p><p class="MsoNormal">“It was an extremely challenging quarter for the global digital asset ecosystem, where we saw the capitulation of crypto prices due to the Proof of Stake ‘PoS’ Luna token blow up in the spring and subsequent contagion from over leveraged ‘shadow banks’, hedge funds and offshore exchanges. Strategically, we have not borrowed expensive debt against our mining equipment or pledged our Bitcoins for costly loans, thus our balance sheet remains healthy to weather this storm,” Frank Holmes, the Executive Chairman at HIVE, said.</p><p class="MsoNormal">“We believe our low coupon fixed debt; attractive green renewable energy prices and high performing energy efficient ASIC chips will help us navigate through this crypto winter.”</p><p class="MsoNormal">Crypto Miners Under Mounting Pressure</p><p class="MsoNormal">Publicly-held crypto miners have entered the earnings season for the third quarter, and the results do not look promising. The prolonged ‘cryptocurrency winter’ and the BTC price at the two-year lows cut mining profitability and negatively impacted share prices.</p><p class="MsoNormal">Last week <a href="https://www.financemagnates.com/cryptocurrency/hut-8-loss-deepens-despiite-higher-mining-rate/">Hut 8 Mining Corp.</a> (NASDAQ:HUT) reported revenue of CAD 18.6 million, which was significantly lower than CAD 50.3 million for Q3 2021. The financial results were reduced despite the fact that the digital asset mining company was able to mine more Bitcoins than last year (982 BTC).</p><p class="MsoNormal"><a href="https://www.financemagnates.com/cryptocurrency/canaan-feels-the-bitcoin-blues-net-income-down-90/">Canaan Inc.</a> (NASDAQ:CAN) is another <a href="https://www.financemagnates.com/tag/wall-street/">Wall Street</a> company from the mining industry, focusing on manufacturing hardware for miners, which reported diminishing financial results. During the three-month period that ended on 30 September 2022, the revenue slumped 40% QoQ to $137.5 million.</p><p class="MsoNormal">For stock traders, publicly-listed mining companies are an indirect way to gain exposure to the cryptocurrency sector. As a result, stock price fluctuations are largely dependent on the price of Bitcoin and other tokens. For example, HIVE shares have lost more year-to-date (80%) than BTC itself (60%). However, during the market boom, they guaranteed higher returns on investment than the oldest cryptocurrency.</p> This article was written by Damian Chmiel at www.financemagnates.com.

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Hut 8 Loss Deepens Despiite Higher Mining Rate

<p> Hut 8 Mining Corp. (<a href="https://www.financemagnates.com/tag/hut-8/" target="_blank">NASDAQ:HUT</a>), a digital asset mining company from North America, reported its quarterly numbers on Thursday. During the three-month period that ended on 30 September 2022, one of the largest mining firms achieved revenue of CAD 31.7 million and mined 982 bitcoins (BTC).</p><p class="MsoNormal">Althgouh Hut 8 was able to mine more digital assets than in the same period last year, the revenue decreased by CAD 18.6 million compared to CAD 50.3 million for Q3 2021. The company reported a net loss of CAD 23.78 million, declining from a neto profit of CAD 23.37 million a year ago.</p><p class="MsoNormal">Looking at results for the nine months closed on 30 September 2022, Hut 8 mined 2,870 BTC, which is 997 more than a year earlier. Although revenues for the period turned out to be higher, at CAD 128.85 million, the company has lost a net CAD 56.15 million year-to-date, compared to a CAD 38.47 million profit reported a year ago.</p><p class="MsoNormal">"Our conservative approach to managing our balance sheet continues to be paramount for us at Hut 8. Notably, we improved our mining capacity by 10% while reducing the average cost to mine each <a href="https://www.financemagnates.com/terms/b/bitcoin/" target="_blank" id="261088a9-0f41-4202-a73c-31f75ba6bd93_1" class="terms__main-term">Bitcoin</a> by 29%, when compared to the second quarter of 2022. We remain steadfastly committed to effectively managing capital in today's challenging environment and believe we are well positioned to deliver shareholder value in 2023 and beyond," Shane Downey, the CFO of Hut 8, said.</p><p class="MsoNormal">According to the company press release, the increase in the number of mined BTCs was achieved due to the higher than average hash rate. However, declining profitability of mining operations, rising energy prices and lowering bitcoin prices have left the company unprofitable in 2022. Profits from <a href="https://www.financemagnates.com/tag/mining/" target="_blank">mining </a>operations alone fell to CAD 9.3 million in Q3, compared to CAD 33.5 million reported a year earlier.</p><p class="MsoNormal">Cryptocurrency Miners in Trouble</p><p class="MsoNormal">Hut 8's stock is losing nearly 80% on Wall Street this year and is an excellent representation of the industry's current condition. Competing miners listed on the stock exchange, like Riot Blockchain Inc. (<a href="https://www.financemagnates.com/tag/riot-blockchain/" target="_blank">RIOT</a>), Canaan Inc. (<a href="https://www.financemagnates.com/tag/canaan/" target="_blank">CAN</a>) and HIVE Blockchain Technologies Ltd. (<a href="https://www.financemagnates.com/tag/hive-blockchain-technologies/" target="_blank">HIVE</a>), are falling in similar percentages.</p><p class="MsoNormal">On the one hand, their stocks guarantee indirect exposure to <a href="https://www.financemagnates.com/terms/c/cryptocurrencies/" target="_blank" id="b091101e-6e02-4b36-aa0e-7c972dfdd6ed_1" class="terms__secondary-term">cryptocurrencies</a> for many investors. So when bitcoin falls, their shares also slide. On the other hand, the fundamentally poor condition of the industry as a whole and low yields from mining digital assets make it very difficult to generate profits during the 'cryptocurrency winter'.</p><p class="MsoNormal">According to data from on-chain analytics firm, Glassnode, miners' revenue per Exahash stands at its lowest levels to date. This further shows how competitive the cryptocurrency mining industry has become in recent years.</p> This article was written by Damian Chmiel at www.financemagnates.com.

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Hut 8 Loss Deepens Despite Higher Mining Rate

<p> Hut 8 Mining Corp. (<a href="https://www.financemagnates.com/tag/hut-8/" target="_blank">NASDAQ:HUT</a>), a digital asset mining company from North America, reported its quarterly numbers on Thursday. During the three-month period that ended on 30 September 2022, one of the largest mining firms achieved revenue of CAD 31.7 million and mined 982 bitcoins (BTC).</p><p class="MsoNormal">Althgouh Hut 8 was able to mine more digital assets than in the same period last year, the revenue decreased by CAD 18.6 million compared to CAD 50.3 million for Q3 2021. The company reported a net loss of CAD 23.78 million, declining from a neto profit of CAD 23.37 million a year ago.</p><p class="MsoNormal">Looking at results for the nine months closed on 30 September 2022, Hut 8 mined 2,870 BTC, which is 997 more than a year earlier. Although revenues for the period turned out to be higher, at CAD 128.85 million, the company has lost a net CAD 56.15 million year-to-date, compared to a CAD 38.47 million profit reported a year ago.</p><p class="MsoNormal">"Our conservative approach to managing our balance sheet continues to be paramount for us at Hut 8. Notably, we improved our mining capacity by 10% while reducing the average cost to mine each <a href="https://www.financemagnates.com/terms/b/bitcoin/" target="_blank" id="261088a9-0f41-4202-a73c-31f75ba6bd93_1" class="terms__main-term">Bitcoin</a> by 29%, when compared to the second quarter of 2022. We remain steadfastly committed to effectively managing capital in today's challenging environment and believe we are well positioned to deliver shareholder value in 2023 and beyond," Shane Downey, the CFO of Hut 8, said.</p><p class="MsoNormal">According to the company press release, the increase in the number of mined BTCs was achieved due to the higher than average hash rate. However, declining profitability of mining operations, rising energy prices and lowering bitcoin prices have left the company unprofitable in 2022. Profits from <a href="https://www.financemagnates.com/tag/mining/" target="_blank">mining </a>operations alone fell to CAD 9.3 million in Q3, compared to CAD 33.5 million reported a year earlier.</p><p class="MsoNormal">Cryptocurrency Miners in Trouble</p><p class="MsoNormal">Hut 8's stock is losing nearly 80% on Wall Street this year and is an excellent representation of the industry's current condition. Competing miners listed on the stock exchange, like Riot Blockchain Inc. (<a href="https://www.financemagnates.com/tag/riot-blockchain/" target="_blank">RIOT</a>), Canaan Inc. (<a href="https://www.financemagnates.com/tag/canaan/" target="_blank">CAN</a>) and HIVE Blockchain Technologies Ltd. (<a href="https://www.financemagnates.com/tag/hive-blockchain-technologies/" target="_blank">HIVE</a>), are falling in similar percentages.</p><p class="MsoNormal">On the one hand, their stocks guarantee indirect exposure to <a href="https://www.financemagnates.com/terms/c/cryptocurrencies/" target="_blank" id="b091101e-6e02-4b36-aa0e-7c972dfdd6ed_1" class="terms__secondary-term">cryptocurrencies</a> for many investors. So when bitcoin falls, their shares also slide. On the other hand, the fundamentally poor condition of the industry as a whole and low yields from mining digital assets make it very difficult to generate profits during the 'cryptocurrency winter'.</p><p class="MsoNormal">According to data from on-chain analytics firm, Glassnode, miners' revenue per Exahash stands at its lowest levels to date. This further shows how competitive the cryptocurrency mining industry has become in recent years.</p> This article was written by Damian Chmiel at www.financemagnates.com.

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Robinhood Reports Loss of $175m in Q3 2022, Crypto Revenue Declines

<p> Robinhood, a major US commission-free stock trading and investing app, reported a net loss of $175 million during the third quarter of 2022. Although the company's transaction-based revenues increased slightly, the cryptocurrency sector generated a substantial decrease.</p><p class="MsoNormal">According to the popular no-fee trading app's quarterly report, total net revenues stood at $361 million, which is an increase of 14% compared to the previous quarter. <a href="https://www.financemagnates.com/tag/robinhood/" target="_blank">Robinhood </a>rose its transaction-based revenues within equities and options asset classes, while <a href="https://www.financemagnates.com/terms/c/cryptocurrencies/" target="_blank" id="b091101e-6e02-4b36-aa0e-7c972dfdd6ed_1" class="terms__main-term">cryptocurrencies</a> lost 12% to $51 million. </p><p class="MsoNormal">Overall, Robinhood reported a net loss of $175 million ($0.20 per share). While this value is certainly not optimistic, it is a significant improvement over the previous quarter when the company showed a net loss of $295 million ($0.34 per share).</p><p class="MsoNormal">"In the third quarter, we achieved our goal of reaching adjusted EBITDA profitability, a quarter earlier than planned. We delivered on top feature requests for customers including advanced charts, options in cash accounts, instant withdrawals and our self-custody, web3 wallet. In the next week, we are raising the yield on uninvested cash for Gold members – making it one of the best rates in the industry," Vlad Tenev, the CEO and Co-Founder of Robinhood Markets, said.</p><p class="MsoNormal">Volatile Market Cuts Robinhood User Base and Staff</p><p class="MsoNormal">In August 2022, Robinhood announced that it was <a href="https://www.financemagnates.com/cryptocurrency/robinhood-cuts-its-workforce-by-23-due-to-deterioration-of-the-macro-environment/">cutting its workforce by almost 25%</a> due to the continued decline in its user base. Earlier in the year, the company <a href="https://www.financemagnates.com/forex/brokers/robinhood-to-lay-off-9-of-staff-as-stock-hits-all-time-low/">slashed 9% of its staff</a> due to the same issues. </p><p class="MsoNormal">According to the newest release, a volatile market environment, risk aversion and long-term declines are the main reason for the continued slump in monthly active users (MAU). In the third quarter, the Robinhood user base contracted to 12.1 million from 14 million reported in the second quarter. MAUs last peaked back in Q2 2021, when they stood at 21.3 million.</p><p class="MsoNormal">Adding to the current problems with the cryptocurrency division, the New York State Department of Financial Services (NYDFS) has <a href="https://www.financemagnates.com/cryptocurrency/news/robinhood-crypto-to-pay-30-million-penalty-for-aml-and-consumer-protection-violations/">imposed</a> a $30 million penalty for consumer protection, <a href="https://www.financemagnates.com/terms/c/cybersecurity/" target="_blank" id="d5b7f88f-89b3-4477-a0d2-c6eae7833df9_1" class="terms__secondary-term">cybersecurity</a> and anti-money laundering violations.</p> This article was written by Damian Chmiel at www.financemagnates.com.

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Argo Blockchain Reports $8.7m Net Loss in Q1 2023 amid Revenue Growth and Cost Reductions

Argo Blockchain (LSE: ARB; NASDAQ: ARBK), a major cryptocurrency mining company, recently shared its unaudited financial results for Q1 2023. Although the report showed notable improvements in revenue, cash reserves, and cost reductions, the company could not achieve a positive net result.

Argo Blockchain Boosts Revenues in Q1 2023

Argo Blockchain ended the first quarter with a substantial balance of $14.2 million in cash and 85 Bitcoin or Bitcoin Equivalents (BTC) in its reserves. The company reported a revenue increase of 15% from Q4 2022, totaling $11.4 million. Despite a net loss of $8.7 million, Argo Blockchain demonstrated resilience by achieving an adjusted EBITDA of $1.6 million.

Throughout the quarter, Argo Blockchain displayed consistent mining performance, mining an average of 5.3 BTC per day, totaling 491 BTC. Mining margins for the quarter improved significantly to 49%, which is up from 35% in Q4 2022.

New RNS: Argo released its Q1 2023 earnings today:+Cash of $14m at the end of March+Q1 revenue of $11m (up 15% from Q4'22)+Mining margin of 49% (up from 35% in Q4'22)+Reduced opex by 70% from H2'22+BlockMiners to add 300 PH/sRNS: https://t.co/OjBHf7KGyq#ARB$ARBK#BTC

"The Argo team is moving ahead with a focus on financial discipline, operational excellence, and growth and strategic partnerships," Seif El-Bakly, the Interim Chief Executive Officer of Argo, said. "To support these initiatives, we recently strengthened our finance team and appointed Jim MacCallum, CPA, CFA, as Chief Financial Officer."

MacCallum, a Certified Public Accountant and Chartered Financial Analyst brings over 30 years of experience in finance and accounting roles.

Two months ago, the publicly-listed miner published its financials for 2022, ending the year with a revenue of £47.4 million ($58.6 million), which is a decrease of 36%. The company posted a net loss of £194.2 million ($240.2 million) for 2022, driven by the declining value of cryptocurrencies.

Argo Blockchain Cuts Costs

Additionally, Argo Blockchain achieved substantial cost reductions in Q1 2023. Operating costs and expenses dropped 70% compared to the average in the second half of 2022, and finance costs fell 63% in the same period.

When it comes to financial discipline, Argo Blockchain has adopted a more scrutinizing approach toward all operating expenses, implementing a stringent internal process targeted explicitly at minimizing non-mining costs. The result of this disciplined approach is a notable 70% reduction in expenses as compared to 2022. In addition to this, the company is actively considering different strategies to fortify its balance sheet.

During Q1, Argo successfully transitioned the Helios facility to Galaxy Digital, and the overall cost for power and hosting was lower than previously forecasted. The decision to sell the mining plant was revealed in December and saved the company from potential bankruptcy filling.

Looking ahead, Argo plans to install 'BlockMiner' machines at its Quebec facilities later this year. They are expected to increase the company's total hash rate to approximately 2.8 EH/s.

The previous year was particularly hard for the mining companies, as their revenues fell 37.5% to $9.55 billion. Overall, BTC miners made $6 billion less than in 2022.

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MicroStrategy’s Bitcoin conviction ‘strong’ as it returns to profit in Q1: CEO

Business intelligence platform MicroStrategy has reiterated its commitment to its Bitcoin (BTC) investment strategy after turning its first quarterly profit since 2020.  The Michael Saylor-founded firm went back into the green in the first quarter of 2023 with a profit of $94 million, which was largely attributed to a one-time income tax benefit of $453.2 [...]

The post MicroStrategy’s Bitcoin conviction ‘strong’ as it returns to profit in Q1: CEO appeared first on Crypto Breaking News.

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