Hive Digital Technologies Sees Return on Investment with Bitmain Mining Rig Acquisition
Bitcoin (BTC) miner Hive Digital Technologies has announced that its acquisition of a fleet of Bitmain mining rigs last year has already paid for itself, thanks to the significant increase in the price of Bitcoin. The company believes this move positions it favorably for the upcoming Bitcoin halving in April 2024.
In December 2022, Hive Digital purchased a total of 3,750 Bitmain S19J rigs and updated its software stack to accommodate the new rigs. Although the S19J rigs were top-of-the-line ASIC rigs in 2022, they have since been succeeded by the more efficient S19Ks.
Since the collapse of FTX in November 2022, which marked Bitcoin heading into a year-long bear market, Hive Digital has been taking advantage of the opportunity to acquire new generation ASICs at attractive prices. In total, the company has purchased 29,000 ASICs since the collapse of FTX, with two separate acquisitions of 9,800 Bitmain S19k Pro mining rigs announced in November and December 2023.
The average price of the ASICs purchased by Hive Digital is approximately $13.70/TH, which the company considers attractive considering the rigs’ average output of 26 J/TH. As a result of these recent acquisitions, Hive Digital’s global fleet efficiency has risen to a rate of 28.9 J/TH, with an expected operating hash rate of 4.8 EH/s by the end of December 2023.
In November 2023 alone, Hive Digital produced 276.3 Bitcoin from its ASICs and GPUs, averaging 66.7 Bitcoins per Exahash. The increase in Bitcoin’s price this year has been a boon for miners, with the cryptocurrency growing more than 160% since January 1. Currently priced at $43,400, Bitcoin has seen a 9.8% increase in the last seven days.
With its strategic acquisitions and the rise in Bitcoin’s price, Hive Digital Technologies is well-positioned to capitalize on the future of Bitcoin mining.