Bitcoin mining company Hive Digital Technologies has reported that its strategic move in 2022 to acquire Bitmain’s mining fleet has been a profitable venture, largely propelled by the substantial surge in BTC prices.
In a statement released on December 8, Hive Digital revealed its ongoing procurement of mining equipment post the FTX collapse, anticipating a favorable positioning for the forthcoming Bitcoin halving, slated for April 2024. The company made a significant purchase of 3,750 Bitmain S19J mining rigs on December 22, 2022, and Aydin Kilic, the president and chief operating officer, highlighted the team's efforts in updating the software stack to accommodate these new rigs.
Initially deemed the top ASIC miner in 2022, the S19J miner was later superseded by the S19K, which boasted a lower power consumption rating compared to its predecessor.
Hive Digital capitalized on the year-long bear market following the FTX crash in November 2022, seizing the opportunity to acquire a new generation of ASICs at appealing USD/THB prices for Bitcoin mining. The company has made significant strides since the FTX collapse, acquiring a total of 29,000 ASICs, including two separate procurements of 9,800 Bitmain S19k Pro miners announced on November 14 and December 4. Hive Digital noted that the average price for approximately 29,000 ASICs stands at around $13.70/TH, a competitive acquisition cost considering the devices' average output of 26 Joules per terahash (J/TH).
Regarding its recent acquisitions, Hive Digital highlighted an enhancement in its global mining efficiency, which now stands at 28.9 J/TH. The company anticipates reaching a hash rate of 4.8 exahash per second by the end of December 2023. Additionally, Hive reported that it mined 276.3 Bitcoin in November 2023 using ASICs and GPUs, averaging around 66.7 Bitcoin per exahash.
With Bitcoin witnessing a remarkable surge of over 160% since the beginning of the year, mining companies, which faced challenging times in 2021 and throughout 2022 during the crypto winter, are experiencing a much-needed resurgence in profitability.
