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Hive Digital Reaps Benefits from Strategic Bitmain Mining Rigs Investment Amid Bitcoin Surge

Algoine News
Summary:
Hive Digital Technologies, a Bitcoin mining company, has declared its investment in Bitmain mining rigs last year as profitable due to the rise in Bitcoin's price. The company capitalized on the fallout of FTX to acquire new-generation ASICs at reasonable prices. Hive's recent purchases have improved global fleet efficiency and expanded its mining capacity, with an operating hash rate predicted to reach 4.8 Exahashes per second by the end of 2023. Aided by Bitcoin’s growth of over 160% since the start of the year, Hive produced 276.3 Bitcoins in November 2023 alone.
Bitcoin mining company Hive Digital Technologies claims that their decision to invest in Bitmain mining equipment last year has already yielded profits, largely attributed to the growing value of Bitcoin. In an announcement on December 8, they showcased their strategic move to accumulate mining machinery during the decline of FTX, stating that this will prepare them for the expected Bitcoin halving event believed to occur in April 2024. Hive amassed 3,750 top-tier Bitmain S19J mining rigs on December 22, 2022. Hive’s President and COO, Aydin Kilic, mentioned that they have upgraded their software to accommodate these new rigs. While the S19J rigs were considered the best ASIC mining equipment in 2022, their successors, the S19K models with their superior energy efficiency, have now taken the spotlight. Hive made use of the opportunity to purchase new-generation ASICs at attractive prices after the FTX crash in 2022 that sent Bitcoin into a bear market. Since FTX's downfall, Hive Digital has added 29,000 ASICs to their resources with two distinct purchases of 9,800 Bitmain S19k Pro mining models announced on November 14 and December 4, respectively. Hive Digital bought the 29,000 ASICs at an average cost of approximately $13.70 per terahash. As these machines have an average power capacity of 26 Joules per terahash, Hive asserts that the procurement cost was a bargain. Hive Digital reported their recent purchases of mining equipment have led to increased efficiency among their international operations, expecting the overall operating hash rate to hit 4.8 Exahashes per second by the end of December 2023. Hive also stated that they mined 276.3 Bitcoins in November 2023 using ASICs and graphics processing units (GPUs), averaging 66.7 Bitcoins per Exahash. Bitcoin’s value has surged more than 160% since the beginning of this year, proving beneficial for miners. This comes after a challenging period throughout 2021 and 2022 – known as the 'crypto winter'. Currently, Bitcoin's value is approximately $43,400, marking a 9.8% increase over the past week.

Published At

12/8/2023 4:15:52 AM

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