- Last month, the price of bitcoin dropped to $80,000, the largest drop in almost three years.
- Hive Digital and other industry participants saw a decrease in production as a result of the ongoing increase in mining difficulty.
As the business shifts resources toward expansion plans, Wall Street-based HIVE Digital Technologies (Nasdaq: HIVE), a publicly traded Bitcoin (BTC) miner, announced a drop in monthly cryptocurrency production for February, mining 89 BTC as opposed to 102 in January.
The decrease mirrored a larger trend in the sector, as miners’ profit margins are being eroded by record-high mining difficulty and growing competition. The fact that the price of Bitcoin fell by more than $18,000 (18%) in February, to $84,000, further complicates the situation.
With an average mining capacity of 5.6 Exahash per Second (EH/s) in February, the Bitcoin mining and high-performance computing company’s total Bitcoin holdings reached 2,620 BTC, or almost $220 million based on the closing price of $84,000 on February 28.
Even though production has decreased month over month, HIVE’s Bitcoin holdings have grown 23% annually. In order to finance capital expenditures, such as the purchase of Bitfarms’ 200 megawatt (MW) hydroelectric mining facility in Paraguay, the business purposefully sold off a portion of its Bitcoin in February.
We are committed to carrying out a revolutionary year that establishes HIVE as one of the biggest and most productive Bitcoin miners globally,” stated Aydin Kilic, HIVE’s president and CEO. “Our 300 MW expansion in Paraguay to quadruple our hashrate from 6 EH/s to 25 EH/s by September 2025 remains on track.”
HIVE keeps growing its high-performance computing business in addition to its primary mining operations. The business anticipates reaching $20 million in annually revenue by Q2 2025, having reported $13 million in annualized run-rate revenue from its GPU fleet in late February.
With the aim of growing operations to generate $100 million in revenue, the firm recently named Craig Tavares as President and Chief Operating Officer of Buzz HPC, its high-performance computing subsidiary.
The price of bitcoin drops below $80,000, and miners' performance also declines
The price of Bitcoin continued the sell-off that started in January over the weekend, once again approaching the psychological support level of $80,000. Particularly substantial drops occurred during the previous month, with Bitcoin dropping 18% overall and reaching levels not seen since November.
For cryptocurrency miners, like HIVE Digital, who experienced difficulties in February, a decline in the price of Bitcoin means less money. In February, Cipher Mining Inc. (NASDAQ: CIFR) mined about 180 bitcoins, compared to 219 in January.
With 706 BTC produced as opposed to 750 in January, MARA Holdings, Inc. (NASDAQ: MARA) reported a 6% month-over-month decrease. As for Canaan Inc. (NASDAQ: CAN), the company mined 82 bitcoins in February, compared to 88 the month before
FAQ
The decline in Bitcoin’s price was part of a larger market sell-off, bringing its value down to $80,000. Increased market volatility and economic factors contributed to this significant drop, affecting the entire crypto mining industry.
Due to the falling Bitcoin price and increasing mining difficulty, HIVE Digital and other miners experienced lower production and reduced profitability. HIVE mined 89 BTC in February, down from 102 BTC in January.
HIVE Digital is expanding its mining operations by acquiring a 200 MW hydroelectric mining facility in Paraguay. The company is also focusing on its high-performance computing (HPC) division to diversify revenue streams.
Yes, several mining firms, including Cipher Mining, MARA Holdings, and Canaan Inc., reported a decline in Bitcoin production in February due to high mining difficulty and the price drop.
HIVE aims to increase its hashrate from 6 EH/s to 25 EH/s by September 2025. Additionally, it plans to grow its high-performance computing business, with a goal of reaching $100 million in revenue.
