Hive Blockchain recently reported nearly doubling its operational hashrate by adding new Bitcoin mining rigs to the rest. Why?
Is Bitcoin Mining Profitable?
According to the Hive Blockchain statement, it will immediately purchase and deploy 1,240 MicroBT WhatsMiner M30S miners with an aggregate operational hash power of 113 Petahash per second (PH / s) as it continues to expand its bitcoin mining operations.
Likewise, the firm noted that the Bitcoin M30S mining equipment had a cost of US $ 2,715 per unit, or US $ 3.4 million, financed with cash from the Company.
Thus, with the deployment of these 1,240 new mining rigs, HIVE’s aggregate operational hash rate almost doubles from 116 PH / s to 229 PH / s.
But this does not end here; HIVE’s statement emphasizes that the company’s goal is a total operational hash power of 1,000 PH / s within the next 12 months.
However, the company explained that the pandemic has been a major obstacle to meeting its objectives.
Crypto market context
It is worth looking at the context under which the Hive Blockchain wishes to expand into Bitcoin mining. First of all, the news comes at a time where Bitcoin is trading at levels we haven’t seen in a long time.
Also, something very particular has been happening in the Bitcoin mining sector. As you already know, the increase in price of Bitcoin increases the profitability of mining equipment.
Nonetheless, data from Blockchain.com suggests that BTC mining revenue has skyrocketed to levels we had not seen since Bitcoin’s third halving in May 2020.
All this under a context where the price and transaction fees of Bitcoin have increased; the latter have seen an increase of almost 200% at the end of October.
Consequently, the expected profitability has also increased after a significant drop in mining difficulty this week.
So in this context, it makes a lot of sense that Hive Blockchain wants to increase its hashrate; especially as it acquires powerful mining equipment for the extraction of Bitcoin.
What other companies are suing Bitcoin mining equipment? What will be the result of all this?