Canadian blockchain miner HIVE Blockchain (NASDAQ:HIVE) produced 264 Bitcoin (BTC-USD) in November from ASIC and GPU mining operations, down from 307 BTC in October. The company continued to face challenges in November due to the contagion concerns from the implosion of digital-asset exchange FTX, rising interest rates, and the energy crisis.
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HIVE produced 224.7 Bitcoin from its ASIC mining operations, while the GPU fleet produced 39.3 Bitcoin. The miner’s monthly average hashrate (measures the computational power of a blockchain network) came in at 2.51 Exahash.
Following the Ethereum Merge, the absence of Ethereum mining has significantly impacted HIVE. The company’s Etherium mining business generated higher gross margins than the Bitcoin mining business. HIVE has repurposed its Ethereum mining facilities to BTC mining.
HIVE’s profitability has been under pressure due to the adverse impact of the Ethereum Merge, higher energy costs, the slump in Bitcoin prices, and rising Bitcoin mining difficulty. The company is trying to improve its profitability by enhancing its mining fleet’s efficiency through the purchase of more energy-efficient equipment.
Is HIVE a Good Stock to Buy?
HIVE stock has plunged nearly 86% so far this year and is trading below $2 currently. Crypto stocks have tanked amid the crypto winter, which worsened due to the FTX collapse. The prospects of a rebound in the near term are looking bleak amid mounting macro pressures.
