Hive, a mining company, is in the red due to the impact of Merge ─ Launched a cloud business with 25 times more profitability | coindesk JAPAN | Coindesk Japan

Crypto asset (virtual currency) mining company Hive Blockchain saw its revenue and total mining margin drop by about 50% after switching to Proof-of-Stake (PoS) on the Ethereum blockchain. It slipped into the red in the third quarter.

The Vancouver, Canada-based company posted earnings of $90 million (approximately 12.1 billion yen, or $1.09 per share), the company announced in a press release on February 21. The quarter before that was a loss of $37 million (about ¥5 billion, or $0.45 per share).

The final three months of 2022 will see Hive not mining Ethereum (ETH) after the September Ethereum “Merge” that ended the blockchain Proof of Work (PoW) verification scheme. It was the first quarter of the year. Earnings were also affected by the slump in the price of Bitcoin (BTC).

Hive uses some of the GPUs it used to mine ETH to mine other crypto assets and then converts them to Bitcoin. As a post-Merge strategy, the company also launched the Hive Performance Cloud, which redirects GPUs to serve high-performance computing workloads other than mining.

“This is an evolution of our skill set as a technology company and a new stage in the proliferation of Hive’s technology services,” Aydin Kilic, CEO of Hive, who took office on January 17, said in a release. will be,” he said.

In the current market environment, Hive said the cloud sector is 25 times more profitable than mining when measured per megawatt hour. Hive expects to generate $1 million in annual revenue from the business.

｜Translation: coindesk JAPAN
｜Editing: Toshihiko Inoue
| Image: Hive’s mining facility in Sweden (Sandali Handagama/CoinDesk)
｜Original: Crypto Miner Hive Blockchain’s Posts Q3 Loss as Ethereum Merge Cuts Revenue, Mining Margin