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Hive Blockchain’s June Bitcoin Mining Of 278.5 Pieces Leaves Stock Static

Tim Worstall
Tim Worstall trader
Updated 7 Jul 2022

Trade Hive Blockchain Stock Your Capital Is At Risk

Key points:

  • Hive Blockchain reported June Bitcoin mining of 278.5 coins
  • However, it's also late filing its Annual Report with NASDAQ
  • That sort of sloppiness is not a good look
  • key point

Hive Blockchain (NASDAQ: HIVE) stock is so far unchanged on reports that the company mined 278.5 Bitcoin in June. Given that the news, at pixel time, is only 25 minutes old and the American markets aren't open as yet this might not be all that much of a surprise, that the stock price hasn't responded as yet. It's also possible that the excitement surrounding bitcoin miners has rather declined in recent months – given the price performance of bitcoin that wouldn't be a surprise either.

What we don't know though is the energy costs Hive has to pay to be able to do the mining. If the calculation required to mine is declining – with some miners dropping out this could be true – then it could be that costs are declining with revenue as the bitcoin price falls. It's also possible to think that them both declining in parallel would be just a bit too neat an occurrence.

Hive Blockchain also has another problem in that it has received notice from NASDAQ that it's in breach of listing rules. This isn't, given the stock price above $3, the usual breach of minimum pricing rules. Rather, Hive is late in filing its Form 40-F, or the annual report. This is something that really shouldn't happen and reflects badly on the quality of Hive's management. They insist they'll file by the 15th of this month.

Hive Blockchain share price
Hive Blockchain share price from IG

Also read: Five Models Dominate The Mining Craft.

It's perhaps worth noting that Hive Blockchain has already had to do a reverse stock split – a consolidation to Brits – in order to maintain that NASDAQ required minimum price level. A second listing problem in only a few months is not a good look.

Bot of course that's all trivia as compared to the longer term prospects of Hive, as with other bitcoin miners. It's possible to think that despite current troubles bitcoin and the wider crypto world really is the future. So, miners – as long as they can control their energy costs – are part of that wave. We could also think that current events are putting a sword to that idea and we're nearing the end of a bubble. Clearly, it's possible to believe either side of that story.

There is a middle road as well, which is that all fast growing industries and technologies attract the, umm, less than fiscally gifted. So, a regular shake out of a fast growing business sector is just that, a shake out. That those who make mistakes – say lending into someone who then goes bust – is not a killer of the sector, it's just evolution in action. This is, after all, how free market capitalism itself works, companies go bust all the time an yet the system as a whole continues to grow and produce profit.

What this means is that with any individual miner or crypto company we need to consider both the specifics of the individual company and also the larger issue of the sector. Good people in a bad sector won't do well, less than efficient folk in any sector won't do well either.

Tim Worstall
Tim Worstall is a freelance writer specialising in economics and the financial markets.