HIVE Digital Technologies (TSX-V:HIVE, NASDAQ:HIVE) executive chairman Frank Holmes talked with Proactive about the company's latest updates for June. Holmes discussed the consistency and reliability of HIVE’s production numbers, highlighting that the company grew its Bitcoin holdings by 2% month over month.
During the conversation, Holmes shared insights on the global impact of Bitcoin, especially in regions like Africa where digital transactions are prevalent. He highlighted Bitcoin's role in democratizing finance and empowering individuals to manage their wealth independently of traditional banks.
Proactive: Frank, with the production numbers for June out, would you say that consistency and reliability are the key takeaways, given how steady the numbers have been?
Frank Holmes: Yeah, I think that's really a strategy. When we look at (Microstrategy’s) Michael Saylor in America, he led the charge on putting Bitcoin on his balance sheet. Now we're seeing other public companies look at adding Bitcoin in addition to holding cash. That's always been the theme of HIVE. HIVE was the first crypto mining company.
We immediately started putting Ethereum and then Bitcoin on our balance sheet. Today, we don't have Ethereum on our balance sheet, but we do have Bitcoin, and we've grown it by 2% month over month. Now, I think we're HODLing over 2,500 Bitcoin.
Given that your value exceeded $140 million as of July 7th and grew by about 2%, it seems you're continuing to upgrade the machinery as well. Could you elaborate on the machinery upgrades you've ordered?
We've ordered, and continue to order, more machinery. It's been a monthly strategy of always upgrading machines. This means we become more efficient and our Zcash production grows, increasing our Bitcoin exposure. After the halving, our Bitcoin production fell from nine to four per day. Now, our journey is to rise above that.
The biggest challenge has been sourcing large-scale green energy, which is what HIVE has always been about. We aim not to rely on a grid with lots of coal energy, but to use green energy instead.
Frank, you mentioned that you've ordered more machines and that they'll be delivered soon. How long does it typically take to get these new machines up and running? Is that something the company has become proficient at, given the frequent changes?
That's a great question. We've been informed today from Asia that they're ready to be shipped. They'll be flown over rather than shipped by cargo, allowing us to install them immediately into our system. This will increase our production footprint by 10%, which is very exciting.
I think what's really important to realize is that Bitcoin empowers people to manage their wealth without traditional banks. Despite this, banking lobbyists are strongly opposed, seeing Bitcoin as PayPal on steroids. During my time in Africa, I saw firsthand how people can manage finances without needing traditional bank accounts, using their cell phones for transfers. Digital money transactions have been thriving in Africa for over two decades. Bitcoin isn't something to fear; it's a tool for democratizing finance globally.
Lastly, are you feeling comfortable with HIVE as you move into the second half of 2024?
We're heading in the right direction. We're working on some very exciting green energy opportunities and improving our facilities. We're focusing on upgrading our facilities for the significant HPC buildout underway. We're very enthusiastic about our journey. We continue to stay lean and efficient in how we run our business.
Quotes have been lightly edited for style and clarity