Hive Digital, a Vancouver-based Bitcoin mining company, is making significant strides in the industry with its recent acquisition of 4,800 Bitmain S19k Antminer mining rigs. Announced on November 14, this strategic move is part of Hive’s preparation for the upcoming 2024 Bitcoin reward halving, which is expected to substantially reduce mining rewards.
Hive Digital, listed on Nasdaq as HIVE, aims to enhance its mining efficiency, particularly in terms of energy consumption, by investing in these new mining rigs. The Antminer S19k Pro, recognized for its air-cooling system, delivers an impressive hashrate of up to 120 terahash per second (TH/s) while maintaining an energy efficiency of about 23 joules per terahash (J/T). This purchase is set to replace Hive’s older mining equipment, which operates at a less efficient rate of 38 J/T.
The acquisition is timely as the Bitcoin mining community anticipates the next halving event in April 2024. This event, which occurs approximately every four years, will halve the reward for mining new blocks, making efficiency and cost-effectiveness crucial for mining operations. Hive’s decision to upgrade its equipment is a strategic move to maintain profitability in the face of reduced rewards.
According to recent reports from theminermag.com, Hive’s current mining efficiency is not optimal, with a 21.2% increase in mining costs reported for the third quarter. This increase translates to over $22,000 per Bitcoin mined. Despite this challenge, Hive remains committed to enhancing its operations and has acquired a total of 8,900 Bitcoin mining rigs in the past six months, all offering superior efficiency.
While Hive’s stock has seen a recent dip, with an 8.95% decrease in the last day and a 9.24% decline over the past month, the company’s year-to-date performance shows a promising 86.27% rise against the U.S. dollar. With a current hashrate of approximately 4.1 exahash per second (EH/s), Hive contributes about 1% of the total Bitcoin network hashrate. The company mines an average of 9 BTC per day, and with the new Bitmain S19k Pro units expected to be operational within 30 days, Hive anticipates a significant boost in its daily mining output and overall efficiency.