Hive Blockchain found ways to cope with losses from ETH algorithm change
Mining company Hive Blockchain conducted a thorough analysis of options to combat falling profits.
The transition to PoS, which happened on September 15, was aimed at addressing environmental and social issues but led to a drop in revenue for miners whose main income was from ETH mining.
In an attempt to restore financial flows, some miners switched to the blockchain, while others began to reorient their business toward bitcoin mining using green energy sources. Hive Blockchain also chose this path. Initially, the decision to diversify revenue led to positive financial reporting.
According to Jaran Mellerud, a BTC mining expert, based on an analysis of Hive's Q3 performance, it is highly likely that the miner will remain stable even as it moves away from its main coin, Ethereum.
Mellerud noted that the company has refocused its free capacity on bitcoin and plans to increase its hash rate to 3.3 Eh/s. As for the balance sheet, the expert notes its high liquidity for the most part it consists of BTC. Hive now has 3,311 BTC, which is the fourth-highest result among publicly traded mining companies. At the same time, the debt-to-equity ratio is quite low.
However, the most promising move for Hive in the current environment is the location of facilities in Canada, Iceland, and Sweden, where there is an opportunity to work on geothermal and water power. It makes it possible not to depend on rising electricity prices.