HIVE Blockchain Technologies (HIVE) Reports Record Revenue of $ 52.6 Million and Net Profit of $ 59.8 Million

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HIVE Blockchain Technologies Ltd. (Nasdaq: HIVE) is pleased to report a record earnings report for the second quarter ended September 30, 2021 (all amounts are in US dollars, unless otherwise noted).

For the three-month period, revenue reached $ 52.6 million, up 41% from the previous quarter and 305% from the same quarter last year. Net income reached $ 59.8 million, up 342% from the previous quarter and 549% from the previous year.

HIVE ended the September quarter with 1,116 Bitcoin (“BTC”) worth $ 48.4 million and 25,154 Ether (“ETH”) worth $ 74.7 million.

Frank Holmes, Executive Chairman of HIVE, said: “We would like to thank our loyal shareholders for believing in our vision to mine both Ethereum and Bitcoin to generate strong cash returns on invested capital and believe this report validates the significant contribution to our strategy of mining both BTC and ETH and HODL as many coins as possible. “

Second Quarter Highlights – September 30, 2021

  • Revenue generated from digital currency mining of $ 52.6 million, with gross mining margin[1] $ 45.0 million;
  • Mined 656 Bitcoin and over 8,688 Ethereum during the three-month period ended September 30, 2021;
  • Net income of $ 59.8 million for the period;
  • Working capital increased by $ 29.7 million during the three-month period ended September 30, 2021; and
  • Digital currency assets of $ 123.1 million as of September 30, 2021

T2 Financial Review F2022

For the quarter ended September 30, 2021, digital currency mining revenue was $ 52.6 million, an increase of approximately 305% over the previous year, mainly due to a increase in cryptocurrency prices, increase in Bitcoin production due to the Acquisition of Atlantic facilities and purchase of miners for these facilities.

Gross mining margin1 during the period was $ 45.0 million, or 86% of digital currency mining revenue, compared with $ 9.2 million, or 71% of digital currency mining revenue, during from the same period of the previous year. The Company’s gross mining margin from digital currency mining depends in part on external network factors, including the difficulty of mining, the amount of rewards and digital currency fees it receives for mining. , as well as the market price of digital currencies.

Net income for the quarter ended September 30, 2021 was $ 59.8 million, or $ 0.16 per share, compared to $ 9.2 million, or $ 0.03 per share, at the same period last year. The improvement is mainly due to the improvement of the gross mining margin1, higher Ethereum and Bitcoin prices, gains on the sale of digital currencies and currencies.

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(1) Non-IFRS measure. A reconciliation to its closest IFRS measures is provided under “Reconciliations of non-IFRS financial performance measures” in the Company’s MD&A.

(2) Revaluation is calculated as the change in value (gain or loss) on the stock of parts. When the coins are sold, the net difference between the proceeds and the book value of the digital currency (including revaluation) is recorded as a gain (loss) on the sale of digital currencies

Financial statements and management report

The consolidated financial statements and management’s discussion and analysis of the Company for the three and six months ended September 30, 2021 will be available on SEDAR at www.sedar.com under HIVE’s profile and on the Company’s website at www.rucheblockchain.com.

Construction and capital investment

The company is close to completing construction of two additional data centers at its campus in New Brunswick, Canada. Construction began at this site in July 2021 and has progressed largely on schedule, despite supply chain delays. The first of the two new data centers is expected to be commissioned by mid-December 2021 and the second in March 2022.

During the second fiscal quarter, HIVE invested heavily in new Bitcoin miners to fill these new data centers. At the end of the quarter, the company had more than 16,000 new BTC miners on order. And since then the Company has announced a capital increase of 100 million Canadian dollars invest in new Bitcoin mining equipment.

Frank Holmes, Executive Chairman of HIVE, said: “I am delighted to see that our infrastructure investments over the past few years have really paid off. We think HIVE is in a fantastic place to benefit from the current boom in crypto adoption.

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Strategic investments

“HIVE is very proud to support the Ethereum ecosystem through investments with strategic partners in DeFi Technologies, Network Media Group and Tokens.com.” said Mr. Holmes.

Webcast details

Management will host a webcast on Tuesday, November 16, 2021 at 9:30 a.m. Eastern Time to discuss the Company’s financial results. The webcast presentation will be Frank Holmes, Executive Chairman; Darcy Daubaras, Chief Financial Officer; and Aydin Kilic, President and Chief Operating Officer. Special updates will also be provided by Network Media Group (TSXV: NTE) (OTC: NETWF) and DeFi Technologies (NEO: DEFI) (GR: RMJR) (OTC: DEFTF). Click on here to register for the webcast.


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