World Crypto Global
- Written by: Damian Chmiel
- Wed, 06 Mar 2024
- Israel
Vancouver-basedcrypto mining company HIVE Digital Technologies Ltd. (NASDAQ: HIVE) has announced an increase inits Bitcoin production capacity and holdings for the month of February 2024. Althoughproduction indicators have increased on a monthly basis, the number of Bitcoinsmined has decreased. In January, it was 234.6 BTC, averaging 7.6 BTC per day,while in February, it was 200 BTC, averaging 6.9 BTC per day.HIVE Digital ExpandsBitcoin Holdings, Boosts Mining CapacityHIVE'smining operations maintained an average hashrate of 4.06 Exahash per second(EH/s) throughout February, resulting in an average production of 60.5 Bitcoinper Exahash. This performance was further bolstered by the integration ofBitmain's advanced S21 Antminers into the company's mining fleet, enhancingefficiency and reducing the cost of Bitcoin production.As a resultof its successful mining operations, HIVE's Bitcoin holdings, or"HODL" position, grew by 10% during February, reaching 2,131 BTC bythe end of the month. At the current Bitcoin prices ($67,000 at the time ofwriting), HIVE's treasury is thus worth $143 million.Thisstrategic HODL approach aligns with the company's anticipation of heighteneddemand for Bitcoin as an alternative asset class, particularly with the recentlaunch of Bitcoin ETFs and the upcoming Bitcoin halving event in April."Theseadvanced machines not only bolster our mining efficiency but also providesustainable stability by significantly reducing the cost of Bitcoin production,"HIVE's President and CEO, Aydin Kilic, said, highlighting the company'stechnological stability and commitment to sustainable growth.As of 4March 2024, HIVE's HODL position had increased to 2,159 Bitcoin,reflecting the company's continued commitment to expanding its Bitcoinholdings."OurHODL strategy is to have a healthy balance sheet similar to what we had for thelast Halving event in 2020," Frank Holmes, the Executive Chairman of HIVE Digital, added.Bitcoin Grows, but What about the Miners?HIVEDigital is the next publicly traded miner after Argo Blockchain, which FinanceMagnates reported on this week and whose February production results were worsethan January's. This occurs as Bitcoin climbs to historic highs andcryptocurrency companies gain several hundred percent.pic.twitter.com/wyXNaTQFru HIVE Digital Technologies (@HIVEDigitalTech) March 5, 2024However,this does not seem to apply to the mining industry, which fared very well onWall Street in 2023 but is losing ground in 2024. HIVE has lost 25% of its value this year on the Nasdaq, while ARGO has lost about 50%.Despite the decrease in Bitcoin production due to maintenance on the Cottonwood substation, we expect that our realized power prices at Helios for February will be significantly lower than normal due to favorable power market conditions, said the CEO of Argo, Thomas Chippas. Lower power prices will have a beneficial impact on our mining profit, mining margin, and operating cash flow for the month.This article was written by Damian Chmiel at www.financemagnates.com.
