HIVE Blockchain acquired new mining equipment from Bitcoin that allowed it to almost double its hashrate, why, how profitable is it?
Recently Hive Blockchain reported almost doubling its operational hashrate by adding new Bitcoin mining equipment to the rest. Why?
Bitcoin mining has collapsed for the second time in its history
Is Bitcoin mining profitable?
According to Hive Blockchain’s statement, it will immediately purchase and implement 1,240 MicroBT WhatsMiner M30S miners with an aggregate operating hash power of 113 Petahash per second (PH/s) as it continues to expand its bitcoin mining operations.
The firm also noted that the Bitcoin M30S mining equipment cost $2,715 per unit, or $3.4 million, financed with Company cash.
Thus, with the implementation of these 1,240 new mining equipment, the aggregate operating hash rate of HIVE almost doubled from 116 PH/s to 229 PH/s.
But it doesn’t stop there; the HIVE statement emphasizes that the company’s goal is a total operating hash power of 1,000 PH/s within the next 12 months.
However, the company explained that the pandemic has been a major obstacle to meeting its goals.
Bitcoin could have a bullish cycle as in 2017
Context of the crypto market
It’s worth looking at the context under which Hive Blockchain wants to expand into Bitcoin mining. First of all, the news comes at a time when Bitcoin is trading at levels we haven’t seen for a long time.
Also, something very particular has been happening in the Bitcoin mining sector. As you know, Bitcoin’s price increase increases the profitability of mining equipment.
However, data from Blockchain.com points to the fact that BTC’s mining revenues have shot up to levels we haven’t seen since the third Bitcoin halving in May 2020.
All this in a context where Bitcoin’s price and transaction fees have increased; the latter have seen an increase of almost 200% as of the end of October.
Consequently, the expected profitability has also increased after a significant drop in mining difficulty during this week.
So, in this context, it makes a lot of sense that Hive Blockchain wants to increase its hashrate; especially as it acquires powerful mining equipment for the extraction of Bitcoin.
What other companies are demanding Bitcoin mining equipment, and what will be the result of all this?