Crypto Miner Hive Sees More Bitcoin, Less Ether Mined in Third Quarter

The slowdown in ether mining is expected to be offset partially by the rally in the cryptocurrency’s price during the quarter ending Dec. 31.

By Aoyon Ashraf

Dec 22, 2021 at 3:15 p.m. UTC

Updated Dec 22, 2021 at 3:28 p.m. UTC

Crypto mining rig. (Lena Safronova/Shutterstock) — Crypto mining rig

Join the most important conversation in crypto and Web3 taking place in Austin, Texas, April 26-28.

Secure Your Seat

Aoyon Ashraf

Aoyon Ashraf is managing editor with more than a decade of experience in covering equity markets

Follow @@Aoyon_A on Twitter

Join the most important conversation in crypto and Web3 taking place in Austin, Texas, April 26-28.

Secure Your Seat

Hive Blockchain expects to mine more bitcoin in the fiscal third quarter compared with the second, while ether mining will decline due to increased competition, the company said in a statement.

Hive, based in Vancouver, British Columbia, said it will mine more bitcoins in the quarter ending Dec. 31 than the 656 it produced in the previous quarter, mainly due to investments in expanding its operations.
It also expects to mine more than 6,900 ether, the native token of Ethereum, in the period. That’s a 21% drop from about 8,688 ether mined in the previous quarter.
The decline is due to average mining difficulty rising by over 16% compared with the prior quarter, including a peak level hit on Dec. 7, as more miners started production, the company said.
“This drop in the production of ether in the current quarter compared to the prior quarter will be offset partially by the average price of ether increasing by 45%, and the higher bitcoin mined in this quarter boosted by the increase in the price of bitcoin in the quarter of over 35%,” Hive said.
In fact, CoinDesk’s first ever year-end survey of crypto miners revealed that the increase in hashrate and difficulty is only expected to rise in 2022 as the industry becomes more competitive.
On Nov. 16, Hive reported record revenue in the fiscal second quarter due to higher crypto prices.

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Aoyon Ashraf

Aoyon Ashraf is managing editor with more than a decade of experience in covering equity markets

Follow @@Aoyon_A on Twitter

Learn more about Consensus 2023, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.

Aoyon Ashraf

Aoyon Ashraf is managing editor with more than a decade of experience in covering equity markets

Follow @@Aoyon_A on Twitter