Blockchain
HIVE Blockchain Reports $5.6 Million of Net Income, Positive Cash Flow and Releases First Quarter Financial Results
HIVE Blockchain Technologies Ltd. (TSX.V:HIVE) (OTCQX:HVBTF) (the “Company” or “HIVE”) announces its results for the first quarter ended June 30, 2019 (all amounts in US dollars, unless otherwise indicated).
“I am pleased to report a healthy first quarter of positive net income and positive cash flow,” said Frank Holmes, Interim Executive Chairman of HIVE. “The financial results reflect our relentless efforts to restructure the Company to ensure transparency and accountability and to strengthen our operational control of HIVE and improve our operational efficiency. These improvements along with a record quarter of mining Bitcoin enabled us to navigate successfully the significant year-over-year decline in the price of Ethereum. The Company ended the first quarter on solid financial footing with nearly $22 million of current assets, including nearly $8 million of cash.”
“Despite positive financial results, 2019 has been a challenging year for HIVE as we were forced to defend against a proxy battle,” added Mr. Holmes. “However, we prevailed and the Company is benefitting from improved transparency, including new direct contracts with local suppliers rather than through our service provider,and financial controls. We expect further continued improvements throughout the fiscal year.
“Our Swedish facility was shut down through much of the first half of the calendar year, a period of low Ethereum prices. We successfully rebooted the facility in July and are already seeing improvements in efficiency from our new strategic partnership with Blockbase Group announced in August, with transition anticipated to be complete in the near future.”
“Blockchain technology and cryptocurrencies continue to evolve,” noted Mr. Holmes. “I am proud of the progress that we have made as industry leaders. We remain at the forefront of an emerging industry and our financial results speak to the operational improvements that we have made at the Company. With an improved cost structure and stabilization of the asset class, I remain confident that HIVE is very well positioned to benefit from positive momentum in the blockchain ecosystem.
“We are hopeful these operational improvements will ultimately be reflected in our share price,” concluded Mr. Holmes. “For most of our history as a public company, there has been a significant correlation between cryptocurrency prices and HIVE’s share price as investors have used us as proxy for cryptocurrencies. Unfortunately, that correlation was impacted negatively following the proxy battle in the spring. This was amplified recently by large selling volume by a large blockchain industry ETF. This ETF uses rules-based investing and had to divest its shares in HIVE due to portfolio rules requiring issuers to have a market capitalization above $100 million. However, these shares have now been absorbed by new buyers. The ETF will able to reacquire their position, as they have with other companies, when our market cap rises back above $100 million.”
Q1 2020 Highlights
- Generated income of $9.1 million, with a gross mining margin of $3.6 million from mining of digital currencies;
- Mined 1,331 newly minted Bitcoin during the period
- Mined approximately 35,000 Ethereum Classic and over 3,200 newly minted Ethereum during the period
- Earned net income of $5.6 million for the period.
Financial Review
For the quarter ended June 30, 2019, HIVE’s gross mining margin was 39%. First quarter income from digital currency mining was produced from an average of 3.8 MW of GPU production capacity, and 300 PH of Cloud Mining capacity, as at June 30, 2019. Below is an analysis of the Company’s income and gross mining margin:
|
Three months ended June 30, |
||||
|
2019 |
2018 |
|||
|
Income from digital currency mining |
$ |
9,123,630 |
$ |
10,660,664 |
|
Operating and maintenance costs of digital currency mining |
(5,554,975) |
(4,219,483) |
||
|
Gross Mining Margin1 |
3,568,655 |
6,441,181 |
||
|
Gross Mining Margin %1 |
39% |
60% |
||
|
Depreciation |
(1,252,957) |
(4,684,456) |
||
|
Gross Profit |
2,315,698 |
1,756,725 |
||
|
Revaluation of digital currencies2 |
2,893,831 |
(1,336,918) |
||
|
Gain on sale of digital currencies |
743,125 |
61,672 |
||
|
General and administrative expenses |
(1,299,115) |
(1,539,540) |
||
|
Foreign Exchange |
(1,110,419) |
(1,477,583) |
||
|
Share-based compensation |
(293,880) |
(98,001) |
||
|
Unrealized gain on investments |
2,359,508 |
– |
||
|
Finance expense |
(53,965) |
(38,794) |
||
|
Tax expense (recovery) |
– |
(50,000) |
||
|
Gain (loss) from continuing operations |
$ |
5,554,783 |
$ |
(2,722,439) |
|
EBITDA3 |
$ |
4,502,197 |
$ |
2,050,811 |
|
Adjusted EBITDA3 |
$ |
1,902,246 |
$ |
3,485,730 |
|
Diluted income (loss) per share |
$ |
0.02 |
$ |
(0.01) |
|
Net cash inflows (outflows) from operating activities |
$ |
844,340 |
$ |
8,277,266 |
|
Net cash inflows (outflows) from investing activities |
$ |
– |
$ |
(7,305,432) |
|
Net cash inflows (outflows) from financing activities |
$ |
272,328 |
$ |
214,040 |
|
As at |
June 30, 2019 |
March 31, 2019 |
||
|
Total assets |
$ |
33,170,539 |
$ |
27,761,197 |
|
Total non-current liabilities |
$ |
356,089 |
$ |
– |
|
(1) |
Gross mining margin equates to income from digital mining less operating and maintenance costs and is a non-IFRS measure; see Non-IFRS Measures in MD&A for reconciliation |
|
(2) |
Revaluation is calculated as the change in value (gain or loss) on the coin inventory. When coins are sold, the net difference between the proceeds and the carrying value of the digital currency (including the revaluation), is recorded as a gain (loss) on the sale of digital currencies |
|
(3) |
EBITDA and Adjusted EBITDA are non-IFRS measures; see Non-IFRS Measures in MD&A for reconciliation |
Financial Statements and MD&A
The Company’s Condensed Interim Consolidated Financial Statements and Management’s Discussion and Analysis (MD&A) thereon for the three months ended June 30, 2019 will be accessible on SEDAR at www.sedar.com under HIVE’s profile and on the Company’s website at www.HIVEblockchain.com.
Webcast Details
Management will host a webcast on Wednesday, October 9, 2019 at 8:30am Eastern Time to discuss the financial results for the three months ended June 30, 2019. Presenting on the webcast will be Frank Holmes, Interim Executive Chairman and Darcy Daubaras, Chief Financial Officer. Webcast details will be provided in a separate news release.
SOURCE HIVE Blockchain Technologies Ltd.
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Blockchain
Blocks & Headlines: Today in Blockchain (BlackRock, Plume, SEALSQ, Hedera, Deutsche Bank, KuCoin)
Blockchain technology continues to drive innovation across industries, reshaping finance, infrastructure, and philanthropy. Today’s news roundup explores exciting developments in blockchain ETFs, tokenization funding, quantum-resistant chips, public blockchain initiatives, and impactful social projects. Here’s a deep dive into the latest blockchain headlines:
BlackRock ETF Embraces Blockchain with First Muni Bond Purchase
BlackRock’s blockchain-focused ETF has made its first foray into municipal bonds, signaling increased confidence in integrating blockchain technology with traditional finance. The ETF’s strategic investment demonstrates how blockchain can enhance transparency and efficiency in bond markets.
By tokenizing municipal bonds, BlackRock aims to simplify trading and settlement processes while reducing associated costs. This development underscores the growing role of blockchain in transforming financial instruments and fostering greater market accessibility.
Source: Yahoo Finance
Plume Secures Funding for Tokenization Platform
Blockchain fintech company Plume has raised significant funding to advance its tokenization platform. The company’s innovative approach enables businesses to convert real-world assets into digital tokens, streamlining asset management and unlocking liquidity.
Tokenization is rapidly gaining traction as a game-changer in sectors such as real estate, art, and commodities. Plume’s success reflects a broader trend of investment in blockchain solutions that bridge the gap between traditional assets and decentralized technologies.
Source: Fortune
SEALSQ and Hedera Partner for Quantum-Resistant Blockchain Chips
SEALSQ and Hedera have announced a groundbreaking collaboration to develop quantum-resistant chips designed to secure blockchain infrastructure. These advanced chips will provide robust protection against future quantum computing threats, ensuring the integrity of blockchain networks.
As quantum computing capabilities evolve, safeguarding blockchain ecosystems becomes increasingly critical. This partnership highlights the importance of proactive measures in maintaining the resilience and trustworthiness of decentralized systems.
Source: The Quantum Insider
Deutsche Bank’s Public, Permissioned Blockchain Initiative
Deutsche Bank’s Layer 2 blockchain solution is set to go public and operate as a permissioned network, according to its tech partner. This initiative aims to strike a balance between accessibility and security, leveraging blockchain to streamline financial services and enhance operational efficiency.
The decision to adopt a public, permissioned model reflects a growing trend among enterprises seeking to harness the benefits of decentralization while maintaining control over sensitive data. Deutsche Bank’s approach could serve as a blueprint for other financial institutions exploring blockchain adoption.
Source: CoinDesk
KuCoin’s “Light Up Africa” Initiative Brings Hope to Thousands
Cryptocurrency exchange KuCoin has made a significant impact through its “Light Up Africa” donation ceremony in Ghana, benefiting 36,000 children across the continent. The initiative combines blockchain technology with philanthropy to address energy poverty and support education.
By leveraging blockchain for transparency in charitable contributions, KuCoin sets an example of how the crypto industry can drive meaningful social change. The project demonstrates the potential of blockchain to empower communities and foster sustainable development.
Source: PR Newswire
Industry Implications and Key Takeaways
Today’s developments highlight the transformative potential of blockchain across multiple domains:
- Integration with Traditional Finance: BlackRock’s ETF underscores the synergy between blockchain and established financial systems.
- Tokenization Trends: Plume’s funding success reflects the growing demand for digital asset solutions.
- Quantum-Resistant Technologies: SEALSQ and Hedera’s partnership addresses emerging cybersecurity challenges.
- Enterprise Blockchain Adoption: Deutsche Bank’s public, permissioned network showcases the adaptability of blockchain in financial services.
- Social Impact: KuCoin’s philanthropic efforts illustrate blockchain’s capacity to drive positive societal outcomes.
The post Blocks & Headlines: Today in Blockchain (BlackRock, Plume, SEALSQ, Hedera, Deutsche Bank, KuCoin) appeared first on News, Events, Advertising Options.
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