Reply to financetechyDisclaimer: I am a significant investor in HIVE and a fan, in so much as I believe that they have a bright future that we all will benefit from. However I do want to review some of financetechy's analysis...not to refute/critique it but just to simply make sure it is in proper perspective. Here is an excerpt from his posting with my questions/comments inserted as applicable.
Over the last 2 years....they have been mining mostly Ether and some Btc and selling all btc and most Ether every qrt, these sales along with modest gas fees up until DEC 2020 has allowed Hive to become modestly profitable ever since the summer of 2020, with earnings per share on par with HUT8. As of 3rd qrt earnings published Feb 21 2021 (actually nothing on SEDAR for that date, earenings came out the evening of March 1st 2021) Hive had $15 million u.s. of Ether on balance sheet(best guess about 13,000 coin) and approx $ 5 million of cash on the balance sheet (actually report stated 9.73M of ETH and 5.27M of BTC...using Dec 31st avg prices translates to ~13,100 ETH coins and ~188 BTC coins, also stated working capital of $23.2M) and $.05 profit for the qrt...and a total $.09 for 3qrts of 2020....not bad compared to every other Btc miner, btw Hive earnings are not calander, so 4th qrt has only just ended March 31st 2021...Now as of April 7th after end of the 4th qrt Hive has announced they now have $60 million u.s of coins (20,500 (actually 20,030) Ether/320 Btc using ETH @ 1.9K ~38M$ BTC @ 59K ~$1.8M) and $36 million of cash.....Whatttttt? why that would mean Hive in the 4th qrt alone will be announcing May/June earnings for the 4th qrt earnings of $.20 /share approx, this would be quadrupple from $.05 in the 3rd qrt, they did this by starting to increase their Hodl and keeping 7500 Ether in the qrt (actually just under 7K new ETH but an increase of ~132 BTC)to add to 13000 prev Ether on their balnce sheet. And most importantly Hive announced that all Ether and all Btc going forward from Jan 1st 2021 for their 4th qrt would be Hodled.
So now Hive is gaining major profitablity daily as they now Hodl 21000 + Ether every qrt and 160+ Btc (the + is the new volume coming from upgrades already being installed) but it gets better... Hive announced April 19 2021 that in the 1st 17 days of the new 1st qrt fiscal 2021that they added another $15 million of new hodl coin (actually stated that their HODL was valued at ~$75M as of Apr16th, their HODL as of March 31st was ~$60M, but without increasing the coin count their March 31st HODL went from a value of BTC worth ~19M (320 coins @~59K) and ETH worth ~39M (20030 coins @~1.9K) to BTC worth ~19.5M (320 coins @~61K) and ETH worth ~$48M (20030 coins @~2.4K)just on crypto price increase alone, so therefore new HODL coin value only increased by ~$7.5M not $15M) , thats approx $850,000 every day dropping on the balance sheet (actually more in the neighbourhood of $470K per day ($7.5M/16 days), meaning that from the 3rd qrt on balance sheet they had $15 million Hodle, now as of 1st qrt ending June 2021 they they are on pace to add approx another $70 million in new coin Hodl for a total hodlings of $125 million approx by the end of June!!!! (based on a $2,000 ether and $50,000 Btc price, wow thats some mutiples of increasing profitabilty of .35/40 per share coming every single qrt....oh thats why the share price is rocketing :)))( ya righ!!, but thats another post coming soon) (actually Dec31st HODL = ~$15M, March31st HODL =~$60M, from Apr1st to June30th at a rate of $470K per day =~$43M...therefore maybe total $103M by end of June)
But how can Hive hodl everything and make big earnings rightnow every single qrt and have cash on the balance sheet as well...its the fees stupid right?, because of ethereum smart contract adapation the use of the ethereum ecosystem is sky rocketing every day...meaning more use therefore allowing eth miners more gas fees, and in the 4th qrt Hive probably racked up north of $12 million in gas fees....giving them approx $31 million of new cash in the qrt just ended. (total 5 mil existing cash+31 mil new cash = $36 million qrt end....Geez my fingers are tired...I hope someone is still reading this!!! (actually they stated they had working capital (cash) of 23.2M as of Dec31st and cash of 36M as of Mar31st so cash only went up by 12.8M, don't see where you get 31M from)
Anyways i could keep going through the remainder of his post but as you can see i do have a few questions as per his review....just want to keep things in perspective...mind you all his projections could also undervalued (if crypto prices rise dramatically) but my only concern is his interpration of historical numbers..
Go HIVE Go!!