Bitcoin (BTC) mining analyst Jaran Mellerud estimated that the Ethereum (ETH) merge might need led to a 40% drop in Hive Blockchain’s income.
Hive simply misplaced its ether mining money cow.
I estimate its revenues to have fallen by 40% as a consequence of “the merge”. pic.twitter.com/1vq0U6EUze
— Jaran Mellerud (@JMellerud) December 5, 2022
Mellerud highlighted that the mining agency’s ETH enterprise was extra worthwhile than its Bitcoin actions, that means the merge occasion may result in a 60% loss in its working money stream.
Hive pivots to ETC and Bitcoin mining
The agency has began mining Ethereum Basic (ETC) to treatment the loss. However its principal focus is to repurpose its Ethereum mining services for BTC mining and enhance capability from 2.8 EH/s to three.3 by February 2023.
With the miner now wanting to enter sustainable Bitcoin mining, Hashrate Index examined its funds to see if it may make this transfer.
Hive funds stay robust
In keeping with Hashrate Index, the corporate’s steadiness sheet seems comparatively secure, with solely $26 million in interest-bearing money owed. This implies the corporate doesn’t must spend a lot on debt servicing and might protect money flows, which is able to assist its liquidity.
In total liquidity, the agency has one of many lowest debt-to-equity ratios amongst public miners and has a fast ratio of three for its steadiness sheet liquidity. Solely 4 different public miners within the prime 15 by enterprise worth have a extra liquid steadiness sheet.