HIVE Digital Technologies (TSX-V:HIVE, NASDAQ:HIVE) executive chair Frank Holmes told investors the company had successfully navigated the recent ‘Bitcoin Halving’ event, which was its second.
The ‘halving’ is a hard-coded feature of Bitcoin that occurs approximately every four years (strictly speaking it happens after every 210,000 new bitcoin blocks are created). It seeks to control the release of new bitcoins.
It is called a ‘halving’ because it regulates the blockchain by decreasing the reward to miners for new bitcoins by half. In effect, the halving slows down the creation of new blocks and its intended to curb inflationary effects in the cryptocurrency.
Hive, today, reported its Bitcoin production results for the month of May, in which it mined 119 Bitcoins. The company, in a statement, also noted that its Bitcoin holdings had increased by 3% to a total of 2,451 BTC.
It maintained an average Bitcoin mining capacity of over 4.9 Exahash (EH/s) and achieved a daily production rate of 3.8 BTC, showcasing its operational efficiency and robust mining capabilities.
HIVE noted the acquisition of 1,000 new Bitmain S21 Pro Antminers, which the company expects will enhance mining efficiency further.
"We have successfully navigated our second Bitcoin Halving event, overcoming numerous challenges over the past four years,” Holmes said in the statement.
“Our team has demonstrated exceptional skill in driving high efficiency and maintaining positive operating cash flow, even during the 2022 market downturn and the unfortunate transition of Ethereum from proof-of-work to proof-of-stake.
“Despite significant macroeconomic headwinds, HIVE has remained resilient, consistently generating positive operating income.”
Holmes added: “We continue to evaluate growth opportunities with a focus on lean operations, profitable mining, sourcing green energy which has been a big challenge, and striving for the best cash flow return on invested capital per share (CFROIC) for our shareholders.
“I am incredibly proud of our team and their unwavering dedication."
Luke Rossy, HIVE’s chief operating officer, meanwhile, commented on the acquisition of the new equipment: “These units are expected to ship this month and are integral to our strategy of continually upgrading our fleet whilst growing our HODL position."