Investments in mining facilities and personnel have improved Bitcoin production
In a notice to the shareholders sent yesterday, publicly-traded crypto mining firm Hive Blockchain has announced that it will be producing 6900 ETH and 670 Bitcoin by the end of this fiscal quarter.
The drop in Ether production and increase in Bitcoin mining when compared with the previous quarter marks the company’s increasing focus towards Bitcoin.
Hive revealed that the company has fulfilled its commitment to mining more than 65 ETH per day this quarter with a total of 6280 ETH being produced between October 1st and December 21st 2021. The projected 6900 Ether by the end of the quarter is a 20% drop from last quarter’s 8688 ETH.
However, the decrease in ETH production has been combined with a 2% quarterly increase in Bitcoin production from 656 BTC to 670 BTC.
Explaining the cause for the increase in Bitcoin production, Hive stated that investments made over the last year both in expanding Bitcoin mining facilities and in training a new generation of miners have prompted the rise.
The company also explained how external factors have affected the drop in Ether production:
“This drop in the production of Ether in the current quarter compared to the prior quarter will be offset partially by the average price of Ether increasing by 45%, and the higher Bitcoin mined in this quarter boosted by the increase in the price of Bitcoin in the quarter of over 35%.”
Hive also pointed out that the strong ETH price helped the company support mining operations as difficulty increased. A 16% average increase in the difficulty of ETH mining was observed this quarter due to an increase in the number of projects that entered the Ethereum ecosystem.
"HIVE has a healthy coin inventory of both Ether and Bitcoin and has a continuing strategy to build our inventory through calendar 2022," said the mining firm. "We are no longer selling coins but banking them through the New Year," the note concluded.