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The increased revenue and earnings inflow HIVE blockchain reported in its Q1 ended June 30 might have been boosted by the incessant crackdown on mining activities by Chinese authorities.
Canadian cryptocurrency mining company HIVE Blockchain Technologies Ltd (CVE: HIVE) has reported better Q1 revenue and earnings, detailing the success of its strategic growth push in the past months. According to the company, its gross revenue from digital currency mining was $37.2 million in the first quarter, a figure that represented a 466% increase from the same quarter last year, and 11% higher than the previous quarter.
Hive Blockchain also recorded a quarterly net income of $18.6 million, up significantly from $1.8 million a year earlier, and $4.3 million higher than the previous quarter. While gross mining margin for the Vancouver-based company stretched from $31.0 million, from $2.6 million last year, and is $3.3 million higher than that experienced in the prior quarter of $27.7 million. HIVE’s net income came in at $0.05 per share, beating last year’s figure of $0.01.
“The first quarter of fiscal 2022 has continued the momentum that we had in fiscal 2021. It’s been an incredible year for HIVE. Despite the effects of COVID-19 and associated supply chain issues, we have achieved record results and continued to increase our Ethereum and Bitcoin mining capacity,” said Frank Holmes, Interim Executive Chairman of HIVE.
Despite the menacing chip shortage and supply chain challenges that slowed the delivery of the company’s core mining machines, HIVE still maintained its overall productivity for the quarter. For the month of September, the company noted that it mined approximately 221 Bitcoin and 2,572 Ethereum. While the mined Bitcoin is worth $10.5 million at the current price of $47,593.74, the value of the mined Ethereum came in at $8.57 million at the current price of $3,329.59.
Per the impressive reports published, HIVE stock is trading with a positive momentum at present, coming off with a gain of 3.25% to CAD3.49.
HIVE Q1 Earnings: Profitability Boosted by Chinese Clampdown
The increased revenue and earnings inflow HIVE blockchain reported in its Q1 ended June 30 might have been boosted by the incessant crackdown on mining activities by Chinese authorities. Earlier in May, China imposed a ban on Bitcoin miners, issuing a quit notice that resulted in the largest migration of mining operators from the Asian country.
The resultant effect of this migration was seen in the corresponding decline in the Bitcoin mining difficulty, which made existing miners like HIVE blockchain earn more from the same amount of work put in.
HIVE’s Q1 earnings performance was also boosted by the company’s acquisition of a data center in Canada, which gave the firm complete control over its operations.
“The acquisition of the New Brunswick data centre campus gives us a strategic advantage in this competitive industry. Owning our own state-of-the-art facilities means we don’t have to worry about landlords raising the rent and gives us full control of our operations,” Frank added.
At present, HIVE Blockchain said it is HODLing a total of 25,000 ETH and 1,030 BTC.