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HIVE Digital Provides January 2024 Production Update Increasing Bitcoin HODL by 14%
Thursday, February 15, 2024Company Profile | Follow Company
Vancouver, BC, February 13, 2024--(T-Net)--HIVE Digital Technologies Ltd. (TSX.V: HIVE) (Nasdaq: HIVE) has announced the unaudited production figures from the Company's global Bitcoin operations for the month of January 2024, with 234.6 Bitcoin produced in January.
The Company has maintained over 3.88 Exahash ("EH/s") of Bitcoin mining capacity on average for January 2024, including ASIC and GPU BTC hashrate (all amounts in US dollars, unless otherwise indicated).
Summary Overview:
The Company's HODL position at the end of January 2024 was 1,939 BTC, which was 234.6 BTC higher than the prior month, representing a 14% increase. All BTC produced was HODL during the month.
Arctic Cold Weather
HIVE mines Bitcoin sourcing geothermal and hydroelectric renewable energy in Sweden, Iceland and Canada. There have been a few days of conserving electricity consumption due to cold weather. The Company's software system to balance the grid has worked smoothly and HIVE expects, based on seasonal weather patterns, milder weather in March.
"Cold weather in Northern Sweden, where the Company's facilities are 100 miles south of the Arctic Circle, hit negative 40 degrees Celsius. Fortunately, this seasonal pattern appears to be behind us. In addition, HIVE does hedge its cost of energy in Sweden" said the company in a release..
Bitcoin Halving Strategy
Frank Holmes, EXECUTIVE CHAIRMAN, HIVE Digital Technologies Ltd.
Frank Holmes, Executive Chairman, of the Company stated "We have upgraded our fleet of ASICs, to improve our global fleet efficiency to reduce our average production cost per Bitcoin. In addition to this, we have been HODL'ing our Bitcoin reserves ahead of the Halving. With the Halving event in April 2024, the global daily Bitcoin block reward will reduce from 900 Bitcoin per day to 450 Bitcoin per day. This underscores the scarcity of Bitcoin, and thus we believe increasing our HODL will put HIVE in a strong position."
Bitcoin ASIC Upgrade with S21
Aydin Kilic, PRESIDENT & COO, HIVE Digital Technologies Ltd.
Aydin Kilic, President & CEO of HIVE stated "We announced that we have received and installed our January batch of Bitmain S21 Antminers, the latest and most efficient machines on the market. These miners each have 200 TH/s and efficiency of 17.5 J/TH. To put this into perspective, this means that at current Bitcoin network difficulty of 75.5T these machines can produce a Bitcoin at a cost of approximately $10,000, assuming a power price of $0.04 per KWHR. HIVE has purchased 7,000 of these machines, which in total will provide 1.4 EH/s of high efficiency mining capacity to our fleet. Additionally, we note that our February batch will ship before Chinese New Year, and we anticipate receiving and installing them before the February month end".
January 2024 Production Figures
The Company's total Bitcoin production in January 2024 was:
Bitcoin Global Network Mining Difficulty Is Volatile
Network difficulty factors are a significant variable in the Company's gross profit margins. The Bitcoin network difficulty was 72.0T as of January 1, and decreased to 70.3 T as of January 31. Accordingly, Bitcoin mining difficulty ended the month about 2% lower than the beginning of the month.
The Bitcoin network difficulty is a publicly available statistic, which reflects the total number of Bitcoin miners online. This is an important metric in analyzing a company's gross profit margins, along with the number of Bitcoin produced. This data is publicly available on many websites, including www.Blockchain.com.
As more Bitcoin is mined (difficulty increases), the daily Bitcoin block reward (which presently is fixed at 900 Bitcoin per day), gets split amongst more miners; thus, each miner receives a smaller portion of the block reward. Conversely, as Bitcoin prices fall, many miners may lose money and power down, thus taking their hashrate off the network, causing network difficulty to decrease.
Those miners with the lowest costs of production, by virtue of having more efficient machines and/or lower energy costs, are able to continue production during these volatile cycles. Not all miners will continuously mine during the month. As a result, some miners will produce less Bitcoin than expected, relative to their advertised hashrate. For the foregoing reasons, HIVE will self-curtail part of its operations if the unhedged spot energy prices are uneconomical, thereby leaving part of its total gross hashrate unutilized.
Bitcoin miners are striving to use the most efficient Bitcoin ASIC chips, and HIVE is happy that it has been able to upgrade its global fleet during this crypto market downturn.
About HIVE Digital Technologies Ltd.
HIVE Digital Technologies Ltd. went public in 2017 as the first cryptocurrency mining company listed for trading on the TSX Venture Exchange with a sustainable green energy focus.
HIVE is a growth-oriented technology stock in the emergent blockchain industry. As a company whose shares trade on a major stock exchange, we are building a bridge between the digital currency and blockchain sector and traditional capital markets. HIVE owns green energy-powered data centre facilities in Canada, Sweden, and Iceland, where we endeavour to source geothermal and hydroelectric energy to mine digital assets such as Bitcoin on the cloud.
Since the beginning of 2021, HIVE has held in secure storage the majority of its treasury of ETH and BTC derived from mining rewards. Our shares provide investors with exposure to the operating margins of digital currency mining, as well as a portfolio of Bitcoin. Because HIVE also owns hard assets such as data centers and advanced multi-use servers, we believe our shares offer investors an attractive way to gain exposure to the cryptocurrency space.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release Forward-Looking Information Except for the statements of historical fact, this news release contains "forward-looking information" within the meaning of the applicable Canadian securities legislation that is based on expectations, estimates and projections as at the date of this news release. "Forward-looking information" in this news release includes, but is not limited to, statements with respect to information about the Offering and the use of proceeds, potential dilution and application of the Penalty Provision; business goals and objectives of the Company; and other forward-looking information concerning the intentions, plans and future actions of the parties to the transactions described herein and the terms thereon. [ MORE ] |
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HIVE Digital Technologies Ltd.
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