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.
Blockchain
Glidelogic Corp. Announces Revolutionary AI-Generated Content Copyright Protection Solution
Blockchain
Ethereum ETFs Aren’t Blockchain But Is A Revolutionary Tech: Top 6 Amazing Reasons To Invest In Them
The financial landscape is rapidly evolving, with the integration of blockchain technology and cryptocurrencies becoming more prominent. Among these, Ethereum ETFs (Exchange-Traded Funds) have emerged as a significant investment vehicle, offering exposure to the Ethereum blockchain’s native cryptocurrency, Ether (ETH), without requiring direct ownership. However, it’s crucial to understand that Ethereum ETFs are distinct from the blockchain itself and serve different purposes in the investment world.
Understanding Ethereum and ETFs
Ethereum: A decentralized platform that enables the creation and execution of smart contracts and decentralized applications (dApps). It operates using its cryptocurrency, Ether (ETH), which fuels the network.
ETF (Exchange-Traded Fund): A type of investment fund that holds a collection of assets and is traded on stock exchanges. ETFs can include various asset classes, such as stocks, commodities, or bonds.
Ethereum ETFs: The Intersection of Traditional Finance and Cryptocurrency
An Ethereum ETF provides a way for investors to gain exposure to the price movements of Ether without directly purchasing the cryptocurrency. This is achieved through an ETF structure, where the fund holds assets linked to the value of Ether, and investors can buy shares of the ETF on traditional stock exchanges.
Key Features of Ethereum ETFs:
- Indirect Exposure: Investors gain exposure to Ether’s price changes without needing to manage or store the cryptocurrency themselves.
- Regulatory Compliance: Unlike the relatively unregulated cryptocurrency market, ETFs operate under the oversight of financial regulators, offering a layer of investor protection.
- Accessibility: Ethereum ETFs are available through traditional brokerage platforms, making them accessible to a broader range of investors.
Why Invest in an Ethereum ETF?
- Diversification: Including an Ethereum ETF in a portfolio can provide exposure to the cryptocurrency market, potentially enhancing diversification beyond traditional assets.
- Convenience and Familiarity: ETFs are a familiar investment product, simplifying the process of investing in cryptocurrencies.
- Professional Management: ETF managers handle the investment decisions, including the buying and selling of assets, which can be advantageous for those less familiar with the cryptocurrency space.
- Regulatory Oversight: ETFs are subject to regulatory scrutiny, potentially offering more safety and transparency compared to direct cryptocurrency investments.
- Potential for Growth: As the cryptocurrency market grows, ETFs linked to assets like Ether may benefit from rising prices.
Key Differences Between Ethereum and Ethereum ETFs
While both are related to the Ethereum blockchain, Ethereum itself and Ethereum ETFs represent different forms of investment:
- Ethereum (ETH):
- Direct ownership of the cryptocurrency.
- Full exposure to Ethereum’s features, including staking and network participation.
- Traded on cryptocurrency exchanges.
- Highly volatile and largely unregulated.
- Ethereum ETF:
- Indirect exposure through shares representing Ether’s value.
- Traded on traditional stock exchanges under regulatory oversight.
- Offers a more stable and familiar investment structure.
- Typically lower volatility compared to direct cryptocurrency ownership.
Future Considerations for Ethereum ETFs
The approval and launch of Ethereum ETFs mark a significant milestone in bringing cryptocurrencies closer to mainstream finance. They offer a convenient and regulated means for investors to gain exposure to the growing digital assets market. However, they also come with limitations, such as not allowing direct participation in the Ethereum ecosystem’s innovations, like dApps and smart contracts.
As the market evolves, we may see more sophisticated financial products that better capture the full potential of the Ethereum ecosystem. For now, Ethereum ETFs provide a balanced option for those interested in cryptocurrency exposure within the framework of traditional finance.
In conclusion, while Ethereum ETFs offer a gateway into the world of digital assets, they should be viewed as complementary to, rather than a replacement for, direct investment in the underlying blockchain technologies. Investors should carefully consider their investment goals, risk tolerance, and the unique attributes of both Ethereum and Ethereum ETFs when making investment decisions.
Source: blockchainmagazine.net
The post Ethereum ETFs Aren’t Blockchain But Is A Revolutionary Tech: Top 6 Amazing Reasons To Invest In Them appeared first on HIPTHER Alerts.
Nexo, a leading institution in the digital assets industry, has reinforced its commitment to data security by renewing its SOC 2 Type 2 audit and attaining a new SOC 3 Type 2 assessment without any exceptions. This rigorous audit process, conducted by A-LIGN, a respected independent auditor specializing in security compliance, confirms Nexo’s adherence to stringent Trust Service Criteria for Security and Confidentiality.
Key Achievements and Certifications
- SOC 2 and SOC 3 Compliance:
- SOC 2 Type 2: This audit evaluates and reports on the effectiveness of an organization’s controls over data security, particularly focusing on the confidentiality, integrity, and availability of systems and data.
- SOC 3 Type 2: This public-facing report provides a summary of SOC 2 findings, offering assurance to customers and stakeholders about the robustness of Nexo’s data security practices.
- Additional Trust Service Criteria:
- Nexo expanded the scope of these audits to include Confidentiality, showcasing a deep commitment to protecting user data.
- Security Certifications:
- The company also adheres to the CCSS Level 3 Cryptocurrency Security Standard, and holds ISO 27001, ISO 27017, and ISO 27018 certifications, awarded by RINA. These certifications are benchmarks for security management and data privacy.
- CSA STAR Level 1 Certification:
- This certification demonstrates Nexo’s adherence to best practices in cloud security, further solidifying its position as a trusted partner in the digital assets sector.
Impact on Customers and Industry Standards
Nexo’s rigorous approach to data protection and compliance sets a high standard in the digital assets industry. By achieving these certifications, Nexo provides its over 7 million users across more than 200 jurisdictions with confidence in the security of their data. These achievements not only emphasize the company’s dedication to maintaining top-tier security standards but also highlight its proactive stance in fostering trust and transparency in digital asset management.
Nexo’s Broader Mission
As a premier institution for digital assets, Nexo offers a comprehensive suite of services, including advanced trading solutions, liquidity aggregation, and tax-efficient credit lines backed by digital assets. Since its inception, the company has processed over $130 billion, showcasing its significant impact and reliability in the global market.
In summary, Nexo’s successful completion of SOC 2 and SOC 3 audits, along with its comprehensive suite of certifications, underscores its commitment to the highest standards of data security and operational integrity. This dedication positions Nexo as a leader in the digital assets space, offering unparalleled security and peace of mind to its users.
Source: blockchainreporter.net
The post Nexo Reaffirms Commitment to Data Protection with SOC 3 and SOC 2 Compliance appeared first on HIPTHER Alerts.
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