Hive Digital Technologies, a Bitcoin mining company, has reported that its strategic acquisition of Bitmain mining rigs in 2022 has already recouped its investment, largely thanks to a significant rise in Bitcoin’s price.
In a statement released on December 8, Hive Digital revealed that it began acquiring mining rigs following the collapse of FTX, a move it believes positions the company advantageously for the anticipated Bitcoin halving in April 2024. On December 22, 2022, Hive purchased 3,750 Bitmain S19J rigs, a leading ASIC rig model at the time. Hive’s president and COO, Aydin Kilic, noted that the company also upgraded its software stack to integrate these new rigs.
While the S19J was a top-tier model in 2022, it has since been surpassed by the S19Ks, which offer improved energy efficiency. Hive Digital has significantly expanded its mining operations since the FTX collapse, acquiring a total of 29,000 ASICs. This expansion includes two separate purchases of 9,800 Bitmain S19k Pro mining rigs, announced on November 14 and December 4.
Hive Digital highlighted the cost-effectiveness of these acquisitions, noting that the 29,000 ASICs were bought at an average price of approximately $13.70 per terahash (TH), with the rigs averaging 26 joules per terahash (J/TH) in output.
These recent acquisitions have enhanced Hive Digital’s global fleet efficiency to 28.9 J/TH, with an anticipated operating hash rate of 4.8 exahashes per second by the end of December 2023. In November 2023 alone, Hive reported producing 276.3 Bitcoin using ASICs and GPUs, averaging 66.7 Bitcoin per exahash.
Bitcoin’s substantial growth of more than 160% since January 1 has been a windfall for miners, who had endured a challenging crypto winter from late 2021 through 2022. As of the latest report, Bitcoin is trading at around $43,400, marking a 9.8% increase over the past week, according to Cointelegraph price data.
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