Investments in mining and personnel have improved Bitcoin production.
In a note sent to shareholders yesterday, listed crypto mining company Hive Blockchain announced that it will produce 6900 ETH and 670 Bitcoin by the end of this financial year.
The decline in Ether production and the increase in Bitcoin mining compared to the previous quarter mark the company’s increasing focus on Bitcoin.
Hive announced that the company has fulfilled its commitment to mine more than 65 ETH per day this quarter, with a total of 6280 ETH produced between October 1 and December 21, 2021. The forecast 6900 ethers by the end of the quarter is a decrease of 20% from 8688 ETH of the last quarter.
However, the decline in ETH production was combined with a 2% quarterly increase in Bitcoin production from 656 BTC to 670 BTC.
As the cause of the increase in Bitcoin production, Hive explained that the investments made last year both in the expansion of Bitcoin mining facilities and in the training of a new generation of miners triggered the increase.
The company also explained how external factors have affected the decline in ether production:
“This decline in ether production in the current quarter compared to the previous quarter is partially offset by the 45% increase in the average price of ether, and the higher Bitcoin mining this quarter is offset by the increase in the Bitcoin price to the quarter of over 35%.“
Hive also pointed out that the strong ETH price helped the company to support the mining operation as the difficulties increased. This quarter, an average increase in the difficulty of ETH mining by 16% was observed due to an increase in the number of projects that entered the Ethereum ecosystem.
“HIVE has a healthy coin inventory of both Ether and Bitcoin and is pursuing a continuous strategy to build up our inventory by the 2022 calendar”, said the mining company. “We no longer sell coins, but invest them over the New Year” , closed the note.