HIVE Digital Technologies (TSX-V:HIVE, NASDAQ:HIVE) CEO Aydin Kilic credited the company's foresight in navigating the recent Bitcoin halving event as it released its fiscal 1Q results showing strong operating margins.
The company's Bitcoin Halving strategy saw it procure 7,000 Bitmain S21 AntMiners and 2,500 Bitmain S21 Pro AntMiners, to increase its installed hashrate to 5.5 EH/s with a global fleet efficiency of 24.5 J/TH.
"Our foresight in navigating this Halving, focusing on upgrading our existing fleet, and being conservative with expansions, comes from years of experience in the crypto-mining sector, with some of our key staff having navigated their 3rd and even 4th Bitcoin Halving events," Kilic said in a statement.
The company achieved a gross operating margin of $11.4 million, or 35%, and an adjusted EBITDA of $14.9 million.
HIVE reported revenue of $32.2 million for the quarter ended June 30, 2024, comprised of $29.6 million from digital currency mining and $2.6 million from high-performance computing (HPC) hosting operations.
Despite the Bitcoin Halving in April 2024, which reduced block rewards by half, HIVE said it had mined 449 Bitcoin during the quarter, down from 658 Bitcoin in the previous quarter. The company attributed its resilience to strategic upgrades of its mining equipment, including the addition of 9,500 Bitmain AntMiners, boosting its Bitcoin mining hashrate by 4% to 4.9 Exahash.
HIVE ended the quarter with 2,496 Bitcoin on its balance sheet, valued at $153.9 million.
Frank Holmes, HIVE’s Executive Chairman, highlighted the company's commitment to green energy and expansion plans in Paraguay, which are expected to double its Bitcoin footprint over the next 12 months.
“Even though we operate in many countries, we have demonstrated a unique ability to keep our operations among the top performers in financial metrics,” Holmes told shareholders.
Kilic also noted that HIVE is also planning to convert 30 MW of existing capacity to Tier 3 data center infrastructure, further enhancing its operational capabilities.