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7/19/18

HIVE Blockchain Technologies (HIVE.v) files its annuals

Ahh wonderful, kid in a sweet shop time. So many things to choose from, so much fun I've had tonight and the charts that I have generated...oh so pretty! But instead of visuals, allow me to pick a few things to explain succinctly what HIVE.v has done in the 2017 period, as ended March 31st 2018:
  • It raised U$152.852m in cash
  • It finished the period with U$14.729m in cash
  • Therefore it spent U$138.123m
Now for what it achieved:
  • It mined approximately 17,000 Ethereum coins. It's slightly less, but let's be reasonable and say today's price is U$500 per ETH. That's U$8.5m worth of coins
  • It mined approximately 54,000 Ethereum Classic coins. Again we can argue the toss but a reasonable price for that coin is U$18 each.  That's U$0.972m
So, U$9.472m in top line revenues for the year. I think it fair to say that ROI is lagging a little at this company, even if U$5.5m or so of that came from the latest quarter. FWIW, it looks as though HIVE has enough ready cash to get through two more quarters (longer if they get their sales tax back soon) and if they continue the acceleration of coin mining they may get to around U$42m worth of coins at today's prices before their money runs out. But hey, that's me just guessing. So maybe if you like the idea of investing in Ethereum you do something radical like buying Ethereum coins and getting more than 30c on the dollar for your initial entry. But again...hey...that's just me.

However for those of you still long, strong and HODL in this company, we recommend that you stick to reading the news release that came out with tonight's numbers and refrain from casting your eyes over the risk factors in the RegFs, because they aren't quite as bullish as in the literature HIVE is allowed to spin at you. For example:
An additional risk to the Company arises as a result of the potential shift from the use of a proof of work validation model by the Ethereum network to a proof of stake model. The current proposal for Ethereum’s shift to proof of stake has a number of unknown variables, including uncertainty over timing, execution and ultimate adoption; and there is not yet a definitive plan that is established and approved. As a result of these uncertainties, the Company cannot estimate the impact of a potential change to proof of stake on operations, but may see its competitive advantages decrease over time; this may have a material adverse effect on the Company. 

Specific to the Company, the Company may not be able to complete its planned expansion of SHA-256 ASIC miners with Genesis on the terms and timeline currently anticipated, or at all, and as such the Company may not realize on any additional electrical consumption or digital currency from the SHA-256 ASIC miners. Additionally, the Company may be required to sell its digital currency inventory in order to pay for its ongoing expenses (and in particular, expenses to maintain the Company’s facilities), and such sales may not be available at economic values.

I really like that one.

Tonight, HIVE.v has a market cap of C$291.45m, which is approximately U$221.5m. Nice big number.