"Blockchain technology has the potential to fundamentally improve transactions for all. HIVE’s operations provide shareholders with exposure to the operating margins of digital currency mining and a portfolio of coins." Frank Holmes
I took an interest in crypto on April 20 when I entered HIVE at $3.20! HIVE is the first publicly-listed blockchain company to bridge crypto finance to traditional capital markets.
HIVE Blockchain Technologies Ltd. (HVBTF) (TSX.V:HIVE) (FSE:HBF) (hereinafter "HIVE") is the largest publicly traded Ethereum miner. The company mines an average of 20,000 Ethereum coins per quarter. HIVE sells the digital currencies that it mines to pay for its operating expenses. It also maintains a portfolio of digital currencies as both inventory and investment.
HIVE has been expanding its Ethereum mining operations since its incorporation in British Columbia in June 1987. In September 2017, HIVE acquired digital currency mining data center equipment in Iceland.
In 2018, HIVE acquired additional data center equipment in Iceland and in Sweden. In April 2020, HIVE acquired a data center in Quebec, Canada. On April 19, 2021, HIVE completed an acquisition of a 50-megawatt data center in New Brunswick to expand its Canadian footprint. HIVE's state-of-the-art data centers are powered mostly by green and renewable energy sources.
HIVE is building a bridge between the Ethereum blockchain and traditional capital markets. That allows equity investors like myself an indirect exposure to crypto assets, an alternative investment space that I was totally unaware of but intend to educate myself.
Financials
Income from digital currency mining was $13.7 million in the third fiscal quarter, which ended December 31, 2020, since HIVE's fiscal year ends on March 31. That showed an increase of 174% over the same quarter the previous year and a 5% increase over its 2nd quarter revenue.
HIVE mined 21,500 Ethers and 165 Bitcoins during the quarter. Gross mining margin expanded to $10.6 million, from $3.8 million the previous year. Net income was $17.2 million for the period, or $0.05 per share, compared to $3.4 million, or $0.01 per share for the 12/31/2019 quarter.
The value of cryptocurrencies on HIVE's balance sheet increased materially over the year from $3.4 million on March 31, 2020 to just above $15 million at December 31, 2020.
HIVE started upgrading its memory chips during the quarter from 4 Gigabyte to 8 Gigabyte and was able to upgrade over 60% of its mining equipment during the quarter.
Conclusion
I am bullish on HIVE!
HIVE is powering the future of the Ethereum blockchain. Interest in Ethereum is growing due to increased interest in decentralized finance, gaming, digital art, and non-fungible tokens.
HIVE holds a diversified portfolio of cryptocurrencies, including Ethereum and Bitcoin, and the company is focused on lowering its costs and providing stable ongoing mining operations.
Rising crypto prices, an increase in capacity, and wider margins point to a potentially strong performance going forward. I expect a strong fiscal Q4 and end-of-year results.
Over the last six months, the company's share price soared by over 1000%. Hodlers know how to play HIVE. They take positions and hold them. Getting in at good price points or adding to positions on dips is important for generating superior returns.
For those, like myself, who got in near the current peak price of Ethereum and HIVE, we can lower our cost basis by averaging down. I expect a lot of volatility in the share price of the stock. However, HIVE is definitely worth holding and buying on the dips. That is why I would keep some cash to grab more shares when the stock takes a temporary dive.
Disclosure: I am not an investment analyst and this article does not constitute investment advice. Do your own research!
Hello, @ereports ! This is @macchiata from the @OCD team. We saw that you already posted your first post here in Hive! Congratulations and welcome! it would be awesome if you do an introduction post. As a sample of what an intro post is, you can refer to this intro post for reference:
Keeping Up With the Buzz - My Introduction to the Hive Community
There's no specific format on how you do your intro post, but there are some suggested content that we would love to see in your post. Information like who are you and where you're from, how did you discover Hive or who invited you, what types of content you want to see here and the types that you want produce, and what are your expectations in this platform. There's no pressure on this. You can choose on whatever information you would like to share.
If you have questions, you can hop into OCD's Discord server and we'll gladly answer your questions. For now, @lovesniper will follow you and we are looking forward to your intro post!
Hello @macchiata, thank you for your comment. Good idea. I am totally new here and still trying to get a grip of @ecency editor. Will post an intro once I get a bit up the learning curve. Don't use Discord. Will check it out. Have a great day!
You're welcome! you can also use https://peakd.com for another alternatives to Ecency. Have fun exploring Hive blockchain. Once again, Welcome to Hive.
Feel free to always mention/ping us in your comments or posts, if you have question or feedback. We tried to make editor as simple as possible, there are Advanced options, but if you are starting you don't have to change anything, just add title, tags and content, hit publish... 😊
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