Entering text into the input field will update the search result below

HIVE Blockchain Technologies And The Crypto Wild West

Gary Bourgeault profile picture
Gary Bourgeault


  • Why HIVE Blockchain Technologies will continue its volatile, but upward climb.
  • While primarily a pure play on ethereum, its bitcoin operations doubled in the last quarter.
  • A couple ways to play the miner - whether you're trading or holding.
  • Over time, the numbers for HIVE should continue to improve, taking into account some quarters will be weak because of price volatility.
  • Rising crypto prices, an increase in capacity, and wider margins point to a potentially strong performance going forward.

It's been a few months since I last wrote about HIVE Blockchain Technologies (HVBTF). With the big jump in the price of ethereum and the accompanying volatility, I thought it would be a good time to take a look at the crypto miner.

HIVE Blockchain Technologies is a direct play in the crypto space, with its focus on mining ethereum and secondarily, bitcoin. Over the last six months the company's share price has soared by over 1,000 percent. For those in it for the long term, HIVE is definitely worth holding and buying on the dips.

HIVE has mining facilities located in Canada, Iceland and Sweden. It is looking at expanding capacity at all of the locations; that and the expected increase in the price of ethereum and bitcoin going forward, suggests revenue continuing to increase. The company sees the annual growth rate of spending on blockchain to grow at a rate of about 60 percent through 2023.

In this article we'll look at its recent performance, some of the numbers from its latest earnings report, and a couple of ways to play the stock, whether you're trading it or holding for the long term.

Numbers improving

With the soaring price of ethereum, and to a lesser degree bitcoin (as it relates to the impact on the performance of HIVE), it wasn't hard to see that the numbers were going to improve in the company's earnings report, and that's how it predictably played out.

In the third quarter ended December 31, 2020, HIVE mined 21,500 ethereum and 165 bitcoin. In the prior quarter the company mined 32,800 Ethereum and 89 Bitcoins. While the number of bitcoins is comparatively small as measured against ethereum, when you measure the price of bitcoin against previous quarters, the boost in revenue from bitcoin was meaningful.

This article was written by

Gary Bourgeault profile picture
I am a former investment advisor and owner of several businesses. These days I invest only for myself while continuing to write on a variety of financial and economic topics.

Analyst’s Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You

Comments (21)

Aksh67 profile picture
you share great information about blockchain, I understand a lot from you
"At the end of calendar 2020, HIVE had working capital of $23.2 million, with digital currencies valued at $15.0 million." you say above, so how on earth can Hive be worth $1.5bn currently ? 100 times its nbv doesn't sound like a compelling buy signal to me for GROW, though it has reacted very well to your article today
bazooooka profile picture
@henry133 The math only works if they start holding onto their ETH and if they can keep doing twenty thousand coins a quarters for many years. If they held all of last quarters mined coins they'd have made sixty million in revenues. You have to believe its a money printing machine to pay the multiples this one trades at.
The price of Ethereum will be going up, which bodes well for Hive.
@lionbite is it your opinion, or something rooted in research.
@shogan Bloomberg reported that last night!
I love how you left out any valuation metrics. This is a good story and that's about it. They have LESS THAN 1% of their current market cap in crypto. If you like crypto go buy eth or Btc and don't touch this overvalued stock.

Mining is a never ending race to get better equipment where your margins are 100% dependent on a rising price. In Canada and Sweden electricity prices are much higher than for most other miners too so I'd expect a new equilibrium price in the future to be below HIVE's cost of electricity.

The obvious trade to me here is long crypto and short Hive. You didn't even happen to mention that Eth is moving to proof of stake which means all their eth mining equipment is useless in a year or two.
@pokerbeeks that Hive is valyed at 99times the value of its crypto holdings is kind of bonkers, but then so is Crypto !!

Blockchain however...
bazooooka profile picture
Gary, how many ETH do you expect HIVE to mine for this quarter and next assuming ETH avg. above fifteen hundred?
Chamazza profile picture
Been in HIVE a long time and expect to see $10,00+ by the start of 2023. In at .22 ($2200) out at $10 ($100,000) is the plan. Let's hope and thanks for the article Gary.
Extreme Income Plus profile picture
@Gary Bourgeault I am long HVBTF and it's been a fantastic stock for me; thus I read this article with anticipation.

However...you didn't mention another excellent way to invest in Hive.

I know you're aware of $GROW 's large investment in Hive. It owns a large convertible bond bearing 8% interest (as I recall), and it's been an extremely profitable investment for $GROW. GROW has other catalysts too; there have been some excellent recent articles on SA about it.

You said you were writing on several ways to profit from Hive.

I just added another way to your list.

Extreme Income Plus
(long HVBTF and GROW)
@Extreme Income Plus
Thanks for this. I think grow is a more conservative way to invest in hive and didn’t know about it until this mention. Somewhat new to the name. Sold my hive for a decent profit after earnings release as I didn’t love the pace of dilution. Put it in OWN so I still have exposure with some downside protection. GLTA.
I purchased HVBTF, RIOT, and MARA to gain cryptocurrency exposure in my institutional portfolio. I am definitely glad I did because they provide great diversification benefits to my bond positions. I also hold large Bitcoin and Ethereum positions in the actual currencies, most of which are earning compounding interest in the currency at 5.75%!

I have a question though, you state "I don't see anything over the long term that will change the growth narrative for HIVE" but with HIVE focusing on Ethereum, there is the obvious change that will come when Ethereum moves from Proof of Work (PoW) to Proof of Stake (PoS). This will render all mining operations obsolete, though it will not happen for at least another year or two.

Has Hive mentioned anything about the way they intend on handling the change? Will they continue to operate validator nodes on the 2.0 system? Or are they planning on becoming primarily Bitcoin miners in the future? I suspect this is the reason that they are increasing Bitcoin mining operations.

I will look into it myself, but it would be nice to read any input you have on the issue.
@Cory Goodman excellent question! I also think management should come out and tell about their plans on this PoS issue as Eth is a big part of their revenues. 

I’d be glad to hear anyone about the replacement options as well.
ottawacalling profile picture
Where is the value creation in this crypto currency business. It's all speculation in a big casino. People are making money because the whole game is not over yet. There is no free lunch anywhere. At sometime, late arrivals to the party will loose big time. Keep watching.
@ottawacalling They will lose if they cannot hold their position until it is profitable again, typically because they are either weak hands or over-leveraged in an unsustainable position. Both situations should definitely stay OUT of the crypto market.

An average investor, however, can achieve significant diversification benefits from a small allocation with defined position sizing and frequent rebalancing based on risk tolerance.

It is only a casino if you treat it like one. Participating in the market does not mean that you have to take out a second mortgage on your house and put it all into crypto.
ngtenor profile picture
@ottawacalling Crypto, or more precisely, Distributed Ledger Technology will make profound changes to the way we do business and the way we interact with public services.
The revolution is only just beginning:
It is already being used to eliminate fraud in the advertising industry: coinrivet.com/...
It is being used to eliminate fraud in US retail coupons: www.ledgerinsights.com/...
It is being used to monitor the rollout of covid vaccines in the UK: www.ledgerinsights.com/...
It is being used to protect Syrian civilians from being bombed by their own government: forkast.news/...
If you want to learn more about it, read here:
HIVE is more the mining aspect of crypto than the developmental currency advancement ; it's not going any where till the crypto is currency .
Extreme Income Plus profile picture
@manfac you say "it's not going anywhere till crypto is currency"...?

I started to come back with a sarcastic answer, but that's not me so let me just say this:

I'm UP 1369% as of last night's close on HIVE...and that's after a few down days, and I've been taking some profits off the table. That's not to brag; I've had plenty of losers in my life too. It is to say that...huh?...to your statement.

So what am I missing here? Are you an anti-crypto guy, or did you just shoot from the hip without looking at the stock?

Extreme Income Plus
I doubled my money on HIVE. I think it's a great company as long as crypto continues to move upward. But with crypto stalling, the possible correction coming and a PE of moon, there's more downside here than upside at the current price. If it drops to the mids 3's (CAD), it's a buy.
Long Hive Blockchain! Good article.
Disagree with this article? Submit your own. To report a factual error in this article, . Your feedback matters to us!

About HIVE

SymbolLast Price% Chg
Market Cap
Yield (TTM)
Rev Growth (YoY)
Short Interest
Prev. Close
Compare to Peers

More on HIVE

Related Stocks

SymbolLast Price% Chg
To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.