Mining company HIVE has made a profit due to the growth of the price of Ethereum

Listed on the Toronto Stock exchange, HIVE Blockchain Technologies completed the second quarter of fiscal 2021 with a profit of $7.4 million, thanks to lower costs and an increase in the price of Ethereum, on which the miner made the main bet. This is stated in the company’s press release.

Last year, HIVE recorded a net loss from all activities of $1.8 million. Compared to the same period in 2020, its revenue increased by 8% to $13 million. Gross profit from mining was $9.2 million against a loss of more than $560,000. The negative cash flow of $4.6 million turned positive to $10.6 million.

“We were able to reduce costs, resulting in record net cash flow compared to any other quarter since Hive entered the stock market three years ago,” said Frank Holmes, interim Executive Chairman of HIVE’s Board of Directors.

This year, the mining company has achieved a half reduction in electricity costs to 1.6 kWh at its facilities in Sweden. This is one of the lowest values in the sector and in “green energy” as a whole.

HIVE is currently considering acquiring a site in Grand Falls, New Brunswick, Canada, with access to 50 MW of cheap, clean electricity.

In the second quarter, the company produced 32,800 Ethereum (ETH), 88,300 Ethereum Classic (ETC), and 89 bitcoins (BTC). The first indicator exceeded last year’s value by 50%. In the previous three months, the company produced 25,000 ETH.

The completion of previously existing agreements for bitcoin’s cloud mining led to a decrease in its production rate. HIVE does not reverse this trend and plans to scale it using the profits from Ethereum mining.

“The pandemic has led to delays in building up the fleet and deploying bitcoin miners, but the company is not abandoning plans to reach a hash rate of 1000 PH/s in the future,” said Holmes.

Recall that in November, HIVE purchased and immediately installed the 1240 bitcoin mining device WhatsMiner M30S.

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