HIVE Blockchain Provides March 2023 Production Update With Over 3 Exahash of Production

HIVE Blockchain Technologies Ltd. has recently announced its production figures for March 2023. The company produced 282 Bitcoin that month, and its current BTC HODL balance is approximately 2,310 as of March 31, 2023. HIVE continued to operate above 3 Exahash throughout March 2023. The production figures include an average of 91 Bitcoin Per Exahash, with an average hashrate of 3.09 EH/s. HIVE sold all of the Bitcoin earned from its GPU mining hashrate payouts.

In addition to its production figures, HIVE made some notable advancements in its operations. The company received over 5,600 BuzzMiners in its data centers, all of which are currently operational. It also ended March 2023 with 3.36 EH/s of mining capacity, including ASIC and GPU BTC hashrate. Frank Holmes, Executive Chairman of HIVE, expressed his satisfaction with the company’s Bitcoin production given the all-time high difficulty. Aydin Kilic, President & CEO of HIVE, noted that the company strives to mine for maximum profit, utilizing energy as a resource for cash flow.

The Bitcoin global network mining difficulty was volatile in March 2023, increasing by approximately 9% throughout the month. Network difficulty factors significantly affect the company’s gross profit margins, as the daily Bitcoin block reward gets split among more miners. HIVE will self-curtail part of its operations if the unhedged spot energy prices are uneconomical, leaving part of its total gross hashrate unutilized. Despite the volatility, HIVE has been upgrading its global fleet to use the most efficient Bitcoin ASIC chips.

March 2023 Production Figures

Frank Holmes, Executive Chairman of HIVE stated, “We are very happy to be producing 282 Bitcoin while difficulty has reached an all-time high. Additionally, our average daily HPC income has increased by 14% on average month over month, from February to March.”

Aydin Kilic, President & CEO of HIVE noted “We have successfully completed our deployment of our first buildout of the HIVE BuzzMiner, and we’ve mined at an average hashrate of over 3 Exahash for the month of March. Additionally, our GPU fleet is generating approximately 16% more revenue per megawatt hour than most Bitcoin mining ASICs. We strive to mine for maximum profit, utilizing energy as a resource for cash flow.”

The Company’s total Bitcoin production in March 2023 was:

• 282 BTC produced;
• 9.1 BTC produced per day on average;
• 3.36 Exahash of BTC Hashrate as of March 31, comprised of 3.06 Exahash of ASIC BTC hashrate and 0.3 Exahash of GPU BTC equivalent Hashrate;
• Monthly average of 3.09 Exahash, which is equal to 91 Bitcoin per Exahash, comprised of an average of 2.88 Exahash of ASIC mining capacity and average of 210 PH/s of Bitcoin GPU mining capacity during the month;
• This represents a 12% month over month increase in average hashrate (February was 2.75 EH/s average hashrate).

Bitcoin Global Network Mining Difficulty Is Volatile

Network difficulty factors are a significant variable in the Company’s gross profit margins.   The Bitcoin network difficulty was 43.1T as at March 1, and increased to 46.8T as at March 31, reaching an all-time high. Accordingly, Bitcoin mining difficulty ended the month about 9% higher than the beginning of the month.

The Bitcoin Network Difficulty is a publicly available statistic, that reflects the total number of Bitcoin miners online and is important in analyzing a company’s gross profit margins, and number of Bitcoin produced. This data is available on many websites, here is one citation: https://www.blockchain.com/explorer/charts/difficulty

As more people mine Bitcoin (difficulty increases), the daily Bitcoin block reward which presently is fixed at 900 Bitcoin per day, gets split amongst more miners; thus each miner receives a smaller portion of the block reward. Conversely, as Bitcoin prices fall, many miners may lose money, and power down, thus taking their hashrate off the network, causing Network Difficulty to decrease.

Those miners with the lowest costs of production; by virtue of having more efficient machines and/or lower energy costs, are able to continue their production during these volatile cycles. Not all miners will continuously mine during the month, as a result some miners will produce less Bitcoin than expected, relative to their advertised hashrate. For the foregoing reasons, HIVE will self-curtail part of its operations if the unhedged spot energy prices are uneconomical, thereby leaving part of its total gross hashrate unutilized.

All Bitcoin miners are striving to use the most efficient Bitcoin ASIC chips, and we are happy that we have been able to upgrade our global fleet during this crypto market downturn.