Hive Blockchain Technologies (TSXV: HIVE) announced this morning that it has seen a further reduction in the firms operating and maintenance costs to approximately 40%. The firm had initially targeted a reduction of 25% when it began cost cutting measures in December 2019.
The further reduction in costs is largely the result of securing a lower than anticipated electricity rate within Sweden, where the company houses much of its mining activity. The lowered rate was partially due to a warmer than anticipated winter within the region, as well as hive taking full control of its Sweden operations in November. The firm primarily uses local green energy suppliers for its electrical supply, which is the firms largest operating expense.
The firm has also managed to lock-in electrical prices, which provides stability in forecasting the operating expenses of its Sweden operations.
Hive, which is one of the worlds largest miners of the Ethereum blockchain, has seen a rise in its equity as of late, with the firm being featured in our market movers column last week. The rise is largely correlated with the rising price of Ethereum as investors turn to digital coins yet again in light of numerous global events, including the American-Iraq-Iran events in the Middle East, and the outbreak of the novel coronavirus in Asia. The alt-coin as a result has rose 98% from the December low of $116.21 to a high set yesterday of $230.99.
Hive Blockchain Technologies last traded at $0.34 on the TSX Venture.
The author has no securities or affiliations related to any organization mentioned. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
