HIVE Blockchain Technologies is one of the most famous and active companies in the cryptocurrency mining industry and has recorded interesting returns compared to 2018.
The company became famous for the development of the Linux-based operating system of the same name (HiveOS) optimised for the mining of Ethereum, Monero and other cryptocurrencies, as well as the homonymous OS for certain Bitcoin ASIC models.
In recent days the company has released some interesting data about the economic situation of the company, highlighting how, although there are still several operating losses, HIVE has recorded an increase of 140% in revenue compared to 2018 as a result of mining activities.
This is a situation in some ways similar to that of many other companies active in crypto mining, which thanks to the growth of bitcoin, ethereum and other cryptocurrencies during the first half of 2019 have significantly increased their revenues.
HIVE records 140% more revenues in mining
According to the financial report released by HIVE, thanks to the increase in the price of bitcoin from $3800 at the beginning of the year to 14 thousand in June 2019, followed by the sudden growth also undergone by ethereum, which went from the initial $130 to 330 in June, the company has managed to significantly improve its returns compared to 2018, which has seen many mining giants record huge losses.
The huge losses of 2018 influenced the balance sheets of the financial year, which therefore still remains heavily in the red, given the collapse of the main cryptocurrencies recorded in the second half of 2018.
However, the investments made in the installation of new energy-efficient ASICs and the relocation of some farms in areas with low consumption electricity have allowed improving profit margins, allowing in the first months of 2019 to reduce losses enormously.
To date, HIVE has 300 PetaHash/s of hashing power for bitcoin mining, about 318% compared to the previous year. This resulted in revenues of as much as $31.8 million, which resulted in profits of about $7 million.
During the current financial year, the company mined 82,000 ETH, about 329% more than the previous year, followed by 1751 BTC, which only began in the latter part of the financial year. The next year, which will close in 2020, will certainly see profits and returns improve further, thanks to the increases incurred by all cryptocurrencies in these months of 2019.
It is difficult to quantify and hypothesise how much revenue will improve, as the continuous increase in the hashrate of bitcoin followed by the halving could shuffle the cards on the table, leading to unexpected returns or losses for all companies active in the crypto mining sector.