- Marzo 30, 2022
- Posted by: Oliver
- Categoria: Economics, Finance & accounting
The next company we’ll look at is another Canadian crypto miner. HIVE was the first miner to be publicly listed and has roots in GPU-based mining of Ethereum. But the company has since evolved, diversifying its mining endeavors to include bitcoin in 2020, since when the company has focused on expanding its operations.
Against the backdrop of last year’s favorable mining conditions, HIVE generated a gross mining margin profile of around ~75%, making it a leader amongst its peers. The company was able to aggressively invest in power capacity increases, new BTC rigs, and ETH rig improvements thanks to combining this with clever ETH selling and well-timed financial infusions.
The purpose of all the investments is for the total BTC equivalent hash rate to increase from the current 2.9 EH/s to 4.5 EH/s by this spring, based on the power capacity rising to 155MW. This will also bring the BTC/ETH mix nearer to 70/30.
The company is targeting further expansion. In the works is a 100MW site in a new facility located in low-cost crypto-friendly Texas, for which HIVE has signed a LOI with crypto mining hosting giant Compute North.
Shlisky sees HIVE in solid position thanks to its “unique combination of established scale, next-generation hardware, and low-cost, 100% renewable power.”
The analyst further writes, “The company has been building on its ethereum mining roots with a rapidly expanding bitcoin mining footprint through strategic expansions, which is driving an outlook for strong revenue growth and profitability. With a HODL strategy growing in prominence and a healthy balance sheet from recent capital raises, we see potential for the company to continue to scale aggressively yet responsibly as it prioritizes its peer-leading operational efficiency.”
Acknowledging the strength of the company’s forward plans, Shlisky rates HIVE shares a Speculative Buy, and his $3.75 price target suggests an upside of ~65% for the year ahead.
Once again, we are looking at a stock with a Strong Buy consensus rating, this time based on a unanimous 3 Buys. The $3.85 price target is a touch higher than Sukumar’s objective and set to generate returns of ~70% over the 12-month timeframe.
