HIVE Digital (NASDAQ:HIVE) (TSE:HIVE) shares surged by over 6% in early trading today after the crypto miner provided a key production update for January.
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The company produced 234.6 Bitcoin (BTC-USD) for the month with an average mining capacity of 3.88 Exahash (EH/S). It produced an average of 7.6 BTC a day in January, ending the month with a mining capacity of 3.85 EH/S. Its HODL (Hold On for Dear Life) position at the end of this period increased 14% sequentially to 1,939 BTC.
Importantly, HIVE has been preparing for the upcoming Bitcoin halving in April. It has upgraded its ASIC fleet to improve efficiency and lower average production costs per BTC. The halving event is expected to lower the daily BTC block reward to 450 BTC per day from the current 900. The anticipated scarcity could provide a further boost to the value of HIVE’s current HODL stash.
Separately, HIVE is slated to announce its third-quarter results on February 29. Wall Street expects the company to post an EPS of -$0.23 on revenue of $27.45 million for the quarter. In the comparable year-ago period, HIVE’s EPS of -$1.07 had outpaced expectations by $0.02.
Is HIVE a Good Stock to Buy Now?
Overall, the Street has a Moderate Buy consensus rating on HIVE Digital, and the average HIVE price target of $6.17 points to a substantial 80.4% potential upside in the stock. That’s on top of a nearly 13% jump in the company’s share price over the past five sessions.
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