Mining
Bitcoin (BTC) mining analyst Jaran Mellerud estimated that the Ethereum (ETH) merge may need led to a 40% drop in Hive Blockchain’s income.
Hive simply misplaced its ether mining money cow.
I estimate its revenues to have fallen by 40% as a result of “the merge”. pic.twitter.com/1vq0U6EUze
— Jaran Mellerud (@JMellerud) December 5, 2022
Mellerud highlighted that the mining agency’s ETH enterprise was extra worthwhile than its Bitcoin actions, which means the merge occasion may result in a 60% loss in its working money circulation.
Hive pivots to ETC and Bitcoin mining
The agency has began mining Ethereum Traditional (ETC) to treatment the loss. However its essential focus is to repurpose its Ethereum mining services for BTC mining and improve capability from 2.8 EH/s to three.3 by February 2023.
With the miner now trying to enter sustainable Bitcoin mining, Hashrate Index examined its funds to see if it could make this transfer.
Hive funds stay sturdy
In keeping with Hashrate Index, the corporate’s stability sheet seems to be comparatively steady, with solely $26 million in interest-bearing money owed. This implies the corporate doesn’t should spend a lot on debt servicing and might protect money flows, which is able to assist its liquidity.
In general liquidity, the agency has one of many lowest debt-to-equity ratios amongst public miners and has a fast ratio of three for its stability sheet liquidity. Solely 4 different public miners within the high 15 by enterprise worth have a extra liquid stability sheet.
