HIVE Digital Technologies– Amelia Tomasicchio, Editorial Director and Co-Founder of Cryptonomist Aydin Kilic, President & CEO
With Bitcoin holding above $100K, how has HIVE’s BTC-backed development technique– especially using BTC on your balance sheet for ASIC orders– helped you scale without handling debt? At HIVE, we have actually constantly believed that Bitcoin isn’t simply a commodity, but a strategic asset. Our hybrid method shows that belief. We have actually historically maintained a significant portion of our Bitcoin holdings for utilization in our operations.
We strategically used our Bitcoin HODL as a pledge at $87,000, which indicates we can repurchase the Bitcoin at this price anytime this year. With Bitcoin trading in the $105,000 range, this suggests an immediate profit (if executed) of roughly $20,000 per Bitcoin. Alternatively, if we aim to increase our Bitcoin HODL to over 2,000, we can do so by repurchasing these Bitcoins at $87,000.
Given HIVE’s projected capacity of generating ~$1 million in BTC revenue per day at 18 EH/s, what is your margin target per BTC mined– and how sustainable is that if Bitcoin drops below $100K again? We strategically utilized our Bitcoin HODL as a collateral at $87,000, which indicates we can repurchase the Bitcoin at this price anytime this year. With Bitcoin trading in the $105,000 range, this implies an immediate profit (if executed) of around $20,000 per Bitcoin. Alternatively, if we intend to increase our Bitcoin HODL to over 2,000, we can do so by repurchasing these Bitcoins at $87,000. HIVE’s breakeven hash cost is approximately $20 per PH per day, meaning that at current difficulty levels, Bitcoin could decline to as low as $50,000, and HIVE can still mine efficiently.
