Hive Blockchain Technologies Ltd stock declined on weakness in Bitcoin prices despite the technology company posting fourth-quarter fiscal results that saw its revenue handily beat Wall Street estimates.
For the period ended March 31, 2023, the Canadian technology company in the blockchain industry reported a loss of $0.05 per share on revenue of $18.2 million, compared to a consensus estimate of $17.7 million in revenue.
Revenue for the fiscal year ended March 31, 2023 was $106.3 million, with a gross operating margin of $50.4 million, or a 47% operating margin on revenue.
During the fiscal year, Hive mined 3,258 Bitcoin from ASICs and 3,503 Bitcoin equivalent when including digital assets mined from graphics processing unit (GPUs).
HIVE emerged through this period with 2,332 Bitcoin on its balance sheet worth $65.9 million. The firm's Bitcoin is unleveraged and was mined through its green energy focused operations, noted Hive.
Investors sent HIVE shares up 4.8% in premarket trading as Bitcoin gained 1.3% to hit more than $31,000. However, Hive shares later fell 3% to $4.49 in morning trade as Bitcoin retreated to around $30,0572.
Like its crypto mining peers, Hive faced a number of headwinds.
“I am proud of our teams’ efforts navigating a challenging year in Bitcoin mining, where we saw the combined headwinds of continued increases in the Bitcoin difficulty, Bitcoin prices averaging 49% lower than last year and the Ethereum Merge to Proof-of-Stake,” Hive CEO Aydin Kilic said in a statement.
“While this led to lower revenues and operating margins compared to last year, each quarter we still managed to realize a positive gross operating margin."
Contact the author Uttara Choudhury at uttara@proactiveinvestors.com
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