ZUG, Switzerland and VANCOUVER, March 1, 2019 /CNW/ - HIVE Blockchain Technologies Ltd. (TSX.V:HIVE) (OTCQX:HVBTF) (the "Company" or "HIVE") today announced its results for the third quarter ended December 31, 2018 (all amounts in US dollars, unless otherwise indicated).
"The cryptocurrency ecosystem continues to undergo significant volatility amid continually evolving regulatory review and fluctuations in price," said Frank Holmes, Interim Executive Chairman of HIVE. "However, HIVE has remained committed to deploying infrastructure assets and diversifying our business mix to commence mining of new coins. We continue to accumulate Ethereum and Ethereum Classic and in the third quarter began adding Bitcoin to our coin inventory. In the quarter we more than doubled our mining capacity, negotiated improved financial terms with our largest partner and added an additional 100 Petahashes ("PH") of capacity at a significantly lower cost than prior deployments."
"We continue to assess opportunities to selectively add to our capacity but we are also looking to the future as we are entering a phase of the Company we are calling HIVE 2.0," added Frank Holmes. "Having deployed significant infrastructure since going public at costs that we expected, I remain excited by new opportunities in blockchain infrastructure and, as I have said in the past, I continue to believe that HIVE is well positioned to capitalize on these opportunities. Though cryptocurrency volatility has shown improvements since we reported our second quarter, it continues to exhibit volatility that outpaces other asset classes though we are seeing improvements in the mining ecosystem broadly. As such, we remain bullish on the long-term prospects and utility of cryptocurrencies and blockchain as a technology that continues to revolutionize industries that touch our lives everyday."
Generated income of $8.4 million, with a gross mining margin loss1 of $2.2 million, from mining of digital currencies;
Mined 28,343 newly minted Ethereum during the period ended December 31, 2018, as compared to second quarter production of 19,569 Ethereum representing an increase of 45% for the quarter;
Mined 784 newly minted Bitcoin during the period ended December 31, 2018;
Incurred a net loss of $36.4 million for the period; and
Launched the operation of an additional 100 PH of cloud-based ASIC Bitcoin mining on December 1, 2018 bringing the Company's digital currency mining footprint to a total of 24.2 MW of GPU mining and 300 PH of ASIC capacity.
1 Gross mining margin is a non-IFRS measure; see Non-IFRS Measures in Q3 MD&A for reconciliation
For the 3 month period ended December 31, 2018, HIVE's gross mining loss was 27%. Third quarter income from digital currency mining was produced from an average of 24.2 MW of GPU production capacity, and an average of 234 PH of Cloud Mining capacity as at December 31, 2018. Below is an analysis of the Company's income and gross mining margin:
Income from digital currency mining
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