World Crypto Global
- Written by: Damian Chmiel
- Tue, 25 Jun 2024
- Israel
HIVEDigital Technologies, a cryptocurrency mining company, certainly has reasons tobe pleased, as the last 12 months have presented a much better picture of itsoperations. After a record weak fiscal year in 2023, during which the company'srevenues fell by 50% and net losses reached $236 million, 2024 proved much more favorable, although profitability was not achieved.HIVE Digital BalancesBitcoin Mining and AI Expansion in Fiscal 2024The companyreported annual revenue of $114.5 million and adjusted EBITDA of $37.5 millionfor the fiscal year ended March 31, 2024. During the period, the company mined 3,123 Bitcoin and held 2,287 Bitcoin worth $161.3 million on its balancesheet at year-end.HIVE'srevenue increased by approximately 8% comparedto the previous fiscal year, with $111.0 million generated from digitalcurrency mining and $3.4 million from its high-performance computing (HPC)business. The company achieved a gross operating margin of $40.3 million,representing a 36% operating margin.Despitereporting a net loss of $51.2 million for the year, HIVE emphasized that thisfigure includes significant non-cash charges, such as $66.4 million indepreciation and a $6.8 million provision on sales tax receivables. The companynoted a comprehensive income of $25.0 million when factoring in a $77.3 milliongain from the revaluation of digital currencies."Wehave led the industry with among the lowest G&A and the lowest sharedilution while using cashflow from operations to strategically and carefullyupgrade and expand our fleet of Bitcoin mining ASICs," said Aydin Kilic,President & CEO ofHIVE. "This is possible through our dedication to maintaining highuptime, lean operations, and seeking efficiencies in all aspects of ouroperations."Despite recordBitcoin prices in 2023, the mining company's stocks did not rise with thecryptocurrency. While they did reach two-monthhighs in March, by May they had fallen to multi-month lows again.Higher BTC Hashrate andFocus on AIHIVEincreased its Bitcoin mining ASIC hashrate by 57% during the fiscal year, from3.0 Exahash in March 2023 to 4.7 Exahash in March 2024. The company focused on environmental sustainability, sourcing green renewable energy forits mining operations in Canada, Sweden, and Iceland."Investorsshould recognize that the industry has grown to over 20 public Bitcoin miningstocks today, compared to approximately five at the last halving," FrankHolmes, Executive Chairman of HIVE, stated, highlighting the evolving landscapeof Bitcoin mining stocks and the differences between US GAAP and IFRSaccounting standards.The companyalso reported progress in its expansion into high-performance computing tosupport artificial intelligence applications using Nvidia GPU chips, whichgenerated $7.2 million in annualized run-rate revenue by the end of the fiscalyear.HIVEutilized at-the-market (ATM) equity programs during the year to raise capital,issuing shares for gross proceeds of C$38.1 million ($28.2 million) in thefourth quarter alone. The company stated it is using the net proceeds forpurchasing data center equipment, strategic investments, and general workingcapital.This article was written by Damian Chmiel at www.financemagnates.com.
