Public Bitcoin Mining Company Expands Capacity as Bitcoin Approaches $100,000
HIVE Blockchain Technologies (HIVE), one of the leading publicly traded Bitcoin mining companies on Wall Street, has made a new move to increase its Bitcoin mining capacity. The company announced that it has expanded its BTC mining infrastructure by ordering 5,000 new Avalon A15-194T ASIC miners from Canaan. This step marks the company's second major acquisition this month, and its timing is notable as the Bitcoin price approaches the $100,000 level.
Earlier this month, HIVE Digital had also added 6,500 Avalon miners to its fleet. As a result, the total miner acquisition for November has reached 11,500 units. With these acquisitions, HIVE aims to increase its operational capacity from 5.6 EH/s to 6.4 EH/s by the end of 2025. The company emphasizes its focus on enhancing energy efficiency and strategic expansion.
Increasing Energy Efficiency
Aydın Kılıç, President and CEO of HIVE, highlighted that the investment is a significant step in the company's return-on-investment-focused strategy. He noted that competitive pricing and payment terms have been secured for Avalon series miners with 194 TH/s efficiency as a result of the collaboration with Canaan, stating that they aim to enhance profitability in all market conditions.
The new Avalon A15-194T miners will contribute to improving HIVE's energy efficiency. These new units will achieve 19.5 joules per terahash (J/TH), consuming less energy compared to the current fleet. While older equipment operates at 30 J/TH, these new investments will be a substantial step towards operational optimization by reducing energy costs.
New Investments in Paraguay
HIVE also announced plans to increase mining capacity with the construction of a new facility in Paraguay. The first phase of this facility, with a capacity of 30 megawatts, is expected to be operational by the second quarter of 2025. This phase will add approximately 2 EH/s to the company's hashrate capacity. The completion of the entire facility is planned for the third quarter of 2025.
Frank Holmes, CEO of HIVE, stated that they aim to become a more sustainable and geographically diversified Bitcoin miner with the green energy project in Paraguay. He expressed that they are strengthening their long-term growth strategies in collaboration with Canaan and plan to add more value for their shareholders through this partnership.
Goal of Improving Financial Performance
The company aims to enhance its financial performance by increasing its BTC mining capabilities. In its report for the third quarter of 2024, HIVE reported a pre-tax net loss of $7.3 million. Compared to a loss of $22.9 million recorded in the same period last year, the company has shown significant improvement while still striving for profitability. The majority of its revenue comes from diversified high-performance computing services, with total revenue reported at $22.6 million.
The current increase in Bitcoin prices is also accompanied by rising mining difficulties. Mining difficulty has reached record levels, significantly affecting miners' profitability rates. The Bitcoin price is moving at nearly $98,000 on major cryptocurrency exchanges, approaching all-time highs.