Hive Blockchain Technologies released its Q4 2018 and full year financial results on Wednesday (July 18), highlighting its cryptocurrency mining production increased substantially compared to its Q3 production.
Cryptocurrency mining powerhouse HIVE Blockchain Technologies (TSXV:HIVE) issued its long-awaited Q4 and full year 2018 financial results on Wednesday (July 18), stating it was a “transformative year” for the company.
According to the press release, the company’s cryptocurrency mining of ethereum and ethereum classic coins increased substantially during the quarter.
For the year ended March 31, 2018, 17,000 ethereum coins and 54,000 ethereum classic coins were mined, while Q4 production saw 9,800 ethereum and 34,000 ethereum classic coins mined, representing a 136 percent and 170 percent increase compared to Q3.
“We have grown from a 2.0 MW facility in Iceland to a company with more than 24 MW of operations to date and digital currency mining assets in three countries,” Harry Pokrandt, CEO of HIVE said in the press release.
In a conference call with investors on Thursday (July 19), Pokrandt said the company continued to add mining capacity with the addition of 13.6 MW at its Sweden facility for a total capacity of 17.4 MW and that it delivered the project on time and on budget.
HIVE also added an additional 6.8 MW, which commenced production after March 31, 2018, increasing its capacity to 20.4 MW in Sweden and 3.8 MW of capacity in Iceland. This brings its total to its digital currency mining footprint at 24.2 MW since changing its business operations last September.
“This had lead to a continued increase in the number of coins held,” Pokrandt said on the call.
Wednesday’s press release said the acquisition provides a “critical path” for the company’s growth and the opportunity to access a significant amount of green power in a safe jurisdiction.
Kolos’ primary asset is a 64-hectare property in Ballangen, Norway and has the capacity to provide HIVE with a supply of more than 1,000 MW of hydroelectricity.
“The scale of the property is terrific,” Pokrandt said on the investor call. “It’s in a great location with all the characteristics we look for: access to green power, reliable high speed internet and a very supportive community.”
In terms of revenue, the company generated just over US$13 million with a gross mining margin of US$10.13 million from mining digital currencies. HIVE also raised gross proceeds of US$160 million of growth capital during its fiscal year in order to finance rapid expansion and future growth opportunities.
HIVE also recorded a net loss from continuing operations of US$25.56 million, which included a one-time charge for the strategic relationship with Genesis valued at US$17.7 million, non-cash share-based compensation of US$4.8 million and general and administration expenses of US$4.54 million.
Looking ahead, HIVE said it will increase its operations from 17.4 MW of data centre equipment to 44.2 MW by September 2018, representing a 154 percent increase, and 6.8 MW for Phase 3 of the Sweden GPU Data Center already in production. The 20 MW of SHA-256 ASIC miners is projected to provide an additional 200 PH, also by September.
Following Wednesday’s announcement, shares of HIVE reacted poorly, putting the company’s stock in the red. Over a one-day trading period, shares of HIVE dipped 7.53 percent to $0.86 as of 2:45 p.m. EST on Thursday.
Analysis rating on TradingView.com currently ranks the company as a “Sell” with 14 against, 9 as “Neutral” and three in favor its stock.
Don’t forget to follow us @INN_Technology for real-time news updates!
Securities Disclosure: I, Jocelyn Aspa, hold no direct investment interest in any company mentioned in this article.