Hive Digital, a prominent player in the cryptocurrency mining sector, is ramping up its preparations for the anticipated Bitcoin reward halving event slated for April 2024. The company has recently announced the acquisition of 4,800 Bitmain S19k Antminer rigs, which are recognized for their high efficiency and low energy consumption. This move comes as part of a broader strategy that has seen Hive acquire 29,000 ASIC machines since November 2022.
The newly acquired Antminer s19k Pro machines, which utilize the SHA256 algorithm and boast an impressive hash rate of 120 terahashes per second (TH/s), are expected to significantly enhance Hive's mining capabilities. The company aims to have these units operational within the next 30 days, well ahead of the halving event which will reduce miners' block rewards from 6.25 BTC to 3.125 BTC.
Despite a recent uptick in operating costs—now averaging $22,000 per BTC mined, a 21.2% increase from the previous quarter—Hive has maintained a strong year-to-date performance with its stock value surging by 86.27% against the U.S. dollar. This growth comes even as Hive's share price has fallen by about 50% since July, marking one of its lowest points in three years.
The company contributes approximately 1% to the total Bitcoin network hashrate, mining around 9 BTC daily with a total hashrate of about 4.1 exahash per second (EH/s). Despite the current challenges facing miners, including a potential loss of revenue per hardware piece post-halving if Bitcoin's price remains unchanged, Hive remains optimistic about Bitcoin's medium-term price performance.
This bullish outlook is further bolstered by Bitcoin's recent price increase of 27% over the past month, with its current value standing at $35,600. Hive and other mining companies are betting on a significant rise in Bitcoin's value as the halving event approaches, which they believe will help offset their increased operating expenses.
Currently, miners earn approximately $0.08 per TH/s per day from block rewards and transaction fees. The new Antminer s19k Pro consumes about $2,000 annually in power costs. If Bitcoin's price holds steady after the halving, revenue per TH/s could drop to $0.04, but Hive is counting on a market upswing to sustain profitability in this critical period for cryptocurrency miners.
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