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HIVE
Digital Technologies, a cryptocurrency mining company, certainly has reasons to
be pleased, as the last 12 months have presented a much better picture of its
operations. After a record weak fiscal year in 2023, during which the company’s
revenues fell by 50% and net losses reached $236 million, 2024 proved much more favorable, although profitability was not achieved.
HIVE Digital Balances
Bitcoin Mining and AI Expansion in Fiscal 2024
The company
reported annual revenue of $114.5 million and adjusted EBITDA of $37.5 million
for the fiscal year ended March 31, 2024. During the period, the company mined 3,123 Bitcoin and held 2,287 Bitcoin worth $161.3 million on its balance
sheet at year-end.
HIVE’s
revenue increased by approximately 8% compared
to the previous fiscal year, with $111.0 million generated from digital
currency mining and $3.4 million from its high-performance computing (HPC)
business. The company achieved a gross operating margin of $40.3 million,
representing a 36% operating margin.
Despite
reporting a net loss of $51.2 million for the year, HIVE emphasized that this
figure includes significant non-cash charges, such as $66.4 million in
depreciation and a $6.8 million provision on sales tax receivables. The company
noted a comprehensive income of $25.0 million when factoring in a $77.3 million
gain from the revaluation of digital currencies.
“We
have led the industry with among the lowest G&A and the lowest share
dilution while using cashflow from operations to strategically and carefully
upgrade and expand our fleet of Bitcoin mining ASICs,” said Aydin Kilic,
President & CEO of
HIVE. “This is possible through our dedication to maintaining high
uptime, lean operations, and seeking efficiencies in all aspects of our
operations.”
Despite record
Bitcoin prices in 2023, the mining company’s stocks did not rise with the
cryptocurrency. While they did reach two-month
highs in March, by May they had fallen to multi-month lows again.
Higher BTC Hashrate and
Focus on AI
HIVE
increased its Bitcoin mining ASIC hashrate by 57% during the fiscal year, from
3.0 Exahash in March 2023 to 4.7 Exahash in March 2024. The company focused on environmental sustainability, sourcing green renewable energy for
its mining operations in Canada, Sweden, and Iceland.
“Investors
should recognize that the industry has grown to over 20 public Bitcoin mining
stocks today, compared to approximately five at the last halving,” Frank
Holmes, Executive Chairman of HIVE, stated, highlighting the evolving landscape
of Bitcoin mining stocks and the differences between US GAAP and IFRS
accounting standards.
The company
also reported progress in its expansion into high-performance computing to
support artificial intelligence applications using Nvidia GPU chips, which
generated $7.2 million in annualized run-rate revenue by the end of the fiscal
year.
HIVE
utilized at-the-market (ATM) equity programs during the year to raise capital,
issuing shares for gross proceeds of C$38.1 million ($28.2 million) in the
fourth quarter alone. The company stated it is using the net proceeds for
purchasing data center equipment, strategic investments, and general working
capital.
This article was written by Damian Chmiel at www.financemagnates.com.
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