Hive Blockchain says GPU mining revenues plunged in September
- Bitcoin miner Hive Blockchain said GPU mining revenue was “dramatically reduced” after The Merge. GPU mining is a small part of their business.
- The total BTC equivalent produced from GPU mining fell 44% month-on-month in September.
- The company is still evaluating whether to shift that energy capacity to bitcoin mining, as “work safe minable coins have experienced significant volatility since The Merge”.
Bitcoin mining company Hive Blockchain said the profitability of GPU mining has dropped since it switched to altcoins after The Merge. “Historically, Hive Ethereum GPU mining has generated 3-4 times more revenue per MW (megawatt) of capacity than Bitcoin ASIC mining,” the company said on Wednesday. After The Merge, as hash rate flowed from Ethereum to other coins, GPU mining revenues increased from $120,000-$150,000 to $20,000-$30,000 per day, the company said. However, since The Merge, Poof Job’s mineable coins have “experienced significant volatility,” trending up and currently producing more than $30,000 in revenue per day, the company said. The same energy capacity employed in the ASICs that mine Bitcoin could fetch about $41,000 at current difficulties, Hive also said.
The company has ASIC machines ready for the switch if it decides to do so, but is currently evaluating the revenue it could generate “once the ecosystem stabilizes and becomes commercially attractive. Still, GPU mining is a relatively small part of Hive’s business (representing 25 of the company’s 130 megawatts of total power), the rest is bitcoin mining.” Hive has successfully leveraged its Ethereum operations to power global bitcoin mining operations of ours to fund and develop the company. Our plans are to continue to expand our sustainable green energy bitcoin mining and to seek new growth opportunities during this downturn,” said CEO Frank Holmes.
The company’s GPU hash rate switched to other mineable currencies and set up payments in Bitcoin instead of holding those currencies. After The Merge, he produced another 15.8 BTC this way. Hive’s total GPU-mined BTC equivalent fell 44% mom: from 228.4 BTC from Ethereum-only mining in August to 111.
7 BTC from Ethereum and 15.8 BTC from other coins in September. By testing Hive’s industry-leading hashing availability and resilience to unlock new possibilities in proof-of-work mining, we’ve been continuously building revenue-generating payments in Bitcoin thanks to our entire GPU, thanks to our global engineering team,” said Aydin Kilic, President and COO of Hive, over Ethereum mining capacities (16% of its total power capacity).
“Once it is clear that BTC mining is earning significantly more $/KWHR, we would look to expand the BTC fleet,” the company told The Block. Hive’s operational bitcoin mining capacity was 2.28 EH/s as of September 30. TI plans to reach 2.7 EH/s by the end of this month and add another 1 EH/s over the next three to four months.