Shares of crypto-mining company HIVE Blockchain Technologies (HIVE) have plummeted since its Nasdaq listing due to the crypto market crash. So, as regulators work to provide guidelines for trading and storing crypto assets, is HIVE now an ideal investment bet? Read more to find out.
HIVE Blockchain Technologies Ltd. (Beehive) in a Vancouver, Canada, It is a growth oriented cryptocurrency mining company. The company owns and operates state-of-the-art, green-powered data center facilities in Canada, Sweden and Iceland.
HIVE went public in 2017 by listing its shares on the Toronto Stock Exchange, making it the first publicly traded cryptocurrency miner with a green energy strategy and ESG.
HIVE listed its shares on the Nasdaq Capital Markets Exchange on July 1, 2021. The listing reflects HIVE’s leading position in the global clean-energy crypto-mining industry. However, the share price has since fallen by 11.5% to close yesterday’s trading session at $2.53.
Here’s what could shape HIV’s near-term performance:
The United States does not have a clear regulatory framework governing crypto assets. As such, US financial regulators have issued an interagency policy plan, known as thecipher race, “Last November to regulate the decentralized financial market. The policy plan highlights how banks can store, trade and transfer crypto assets. It sets forth guidelines regarding the issuance of stablecoins, loans backed by crypto assets, and the tax accounting for these assets. Basel Committee The proposed capital requirement for cryptocurrencies, which states that bitcoin and equivalent assets should be subject to a 1250% higher risk weight.
The Federal Reserve, the Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency issued a joint statement, saying: “Inter-agency Accelerator has progressed rapidly and built on inter-agency knowledge, which has helped identify and assess key issues related to potential crypto-asset activities. carried out by banking institutions.
increase mining capacity
HIV mined the equivalent of 4,032 bitcoins in 2021. This includes bitcoin, ethereum, and ethereum classic. The company mined 245 Bitcoin and 2,178 Ethereum in December 2021. Regarding this, HIVE CEO Frank Holmes said, “We are very pleased to report that HIVE has continued its strong momentum in expanding our Bitcoin hash power even as the network becomes increasingly difficult. As of today, we are producing approximately 8.8 BTC per day.Our Bitcoin hash power increased in December, and at the end of the calendar year our hashrate was 1.7 Exahash, which translates to a 12% increase in Bitcoin mining month-on-month, while Bitcoin price correction.
For the second fiscal quarter ending September 30, 2021, HIVE’s revenue increased 305% year-over-year to $52.60 million. Its net income was $59.80 million, up 549% over the same period last year. Earnings per share rose 433.3% from the previous quarter to $0.16.
As of September 30, 2021, HIVE owns 1,116 Bitcoin, worth $48.40 million, and 25,154 Ethereum, worth $74.70 million.
POWR ratings reflect uncertainty
HIV has received an overall C rating, which is the equivalent of neutral in our property POWR . ratings the system. POWR ratings are calculated by taking into account 118 characteristic factors, with each factor weighted to the optimum score.
HIVE is rated C for momentum, quality and value. The stock is currently trading below the 50-day and 200-day moving averages at $3.34 and $3.05, respectively, which indicates a downtrend synchronized with the degree of momentum.
HIVE’s net income margin of 76.56% for 12 months is 1092.6% higher than the industry average of 6.42%. However, the company’s 12-month subsidized free cash flow margin is negative 101.96%, justifying the quality score.
Additionally, the stock’s 5.11 forward P/S multiple is 28.1% higher than the 3.99 industry average, justifying the value grade.
out of 77 stock in Technology – Services Industry, HIVE is ranked No. 36.
In addition to what I mentioned above, one can see HIVE’s ratings for growth, feel, and stability here.
Cryptocurrency regulations are expected to take shape this year as government agencies strive to establish guidelines for cryptocurrency trading in the United States. Globally, various countries, including China and India, have cracked down on cryptocurrencies. In contrast, other countries such as El Salvador and Venezuela have adopted cryptocurrency as legal tender.
While HIV is well positioned to benefit from the cryptocurrency’s rally, we believe investors should wait for governments to establish a clear framework on these digital assets before investing in stocks.
How HIVE Blockchain Technologies Ltd. Stacks Up. (HIVE) versus peers?
While HIVE is rated C in our rating system, one might want to look at its industry peers, NetScout Systems, Inc. (NTCT) and Celestica, Inc. (CLS), which has an A (strong buy) rating.
HIVE shares were trading at $2.40 a share Thursday morning, down $0.13 (-5.14%). Year-to-date, the HIVE is down -9.09%, versus a -1.15% rise in the benchmark S&P 500 over the same period.
About the author: Aditi Ganguly
Aditi is an experienced content developer and financial writer who is passionate about helping investors understand the do’s and don’ts of investing. She has a keen interest in the stock market and has a fundamental approach when analyzing stocks.
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