Vancouver-Based Company Uses 100% Renewable Energy, Allays Fears Surrounding Environmental Consequences of Cryptocurrency

Published on: 26 April 2022 05:45 PM
by KnowESG

HIVE Blockchain Technologies from Vancouver could alleviate the fear surrounding environmental concerns and attract more ESG investments in cryptocurrency by winning over potential investors looking for eco-friendly investments.

The Bitcoin, Ethereum, and Ethereum Classic miner, which costs $905.76 million, is powered entirely by renewable energy. According to management, TSX's first publicly traded crypto miner has used relatively low-cost, green or renewable electricity since day one.

HIVE operates in three countries: Canada, Iceland, and Sweden, all of which are cool and politically stable. Green energy (with a capacity of 30 MW) is used to power Canada's specialised bitcoin mining operation. Iceland's state-of-the-art blockchain infrastructure facility is powered by geothermal and hydroelectric resources.

HIVE's graphic processing unit (GPU) facilities in Sweden are entirely powered by hydroelectricity (17 MW). The company outfits the facility with unique and efficient GPU rigs for Ethereum mining. HIVE is one of the world's largest and most varied cryptocurrency miners, with 50 MW of green power in its data centres.

Frank Holmes, HIVE’s executive chairman, said, “We are very pleased to report HIVE has continued its strong momentum in expanding our hashing power.” He pointed to the mining hash power of both Bitcoin and Ethereum. The company produces BTC daily, on average.

Unlike direct exposure to Bitcoin and other cryptocurrencies, potential investors have a solid foundation. For example, HIVE's total revenue from digital currency mining increased 397 per cent from Q3 fiscal 2021 to Q3 fiscal 2022 (quarter ended December 31, 2021).

In comparison to the same quarter the previous fiscal year, net income increased by 273.26 per cent to US$64.2 million. Gross mining margin, higher Bitcoin and Ethereum prices, gains on the sale of digital currencies, and foreign exchange, according to management, were all contributors to the considerable rises.

The United States is expanding. In 2022, HIVE is optimistic, and it plans to treble its Bitcoin mining capacity. The corporation has agreed to buy new application-specific integrated circuit (ASIC) chips from Intel. HIVE is growing in the United States, having inked a preliminary agreement with Compute North. The Texas-based mining infrastructure provider's renewable energy project (100 MW) will be housed at HIVE.

Christopher Liew, a Fool contributor, has no position in any of the stocks mentioned. The Motley Fool owns Bitcoin and Ethereum and recommends them. Intel and Tesla are two stocks that The Motley Fool recommends.