HIVE Blockchain Exploring GPU Mineable Coins Ahead of Ethereum Merge

Crypto mining firm HIVE Blockchain acknowledged the potential Ethereum “Merge” to the Proof of Stake mechanism on Tuesday in an update on its mining production for the month of August.

According to the current projections from the Ethereum Foundation (a non-profit organization dedicated to supporting Ethereum and related technologies), Ethereum’s new consensus layer will upgrade to Bellatrix on September 6, 2022, with estimates that the merge to Proof of Stake system will happen between September 10 and September 20, 2022.

Speaking about the upcoming Ethereum merge, Vancouver-based HIVE said it has already started exploring mining other GPU mineable coins with its fleet of GPUs. The miner said it is implementing beta-testing this week, before the merge.

Hive said its technical team is implementing a strategy to optimize the hashrate economics of the 6.5 Terahash of Ethereum mining capacity (that the firm reached at end of August) in the event of Ethereum’s transition to the Proof of Stake mechanism, across various other GPU mineable coins.

HIVE sees a competitive landscape where the GPU miners with the most efficient equipment and lowest cost of electricity will prevail.

The firm said its Boden mining facility is one of the largest single-site Ethereum mines in the world. With power fixed at approximately $0.03 USD per KWHR within the facility, HIVE said it is well positioned to navigate the market ahead.

HIVE’s fleet of GPU’s comprises approximately 21.5 MW or 16% of the company’s global portfolio of 130 MW of green energy (hydro and geothermal) data centre capacity.

Of these 21.5 MW, approximately14.8 MW are comprised of legacy GPU cards, which have paid for themselves many times over since their installation, thus marking a successful venture in Ethereum mining.

HIVE said these legacy GPU cards comprise approximately 3.7 Terahash of the company’s Ethereum hashrate. According to the firm, these cards can be used for cloud computing and AI applications, as well as for engineering applications, including scientific modelling of fluid dynamics.

HIVE said it has a test pilot project for cloud computing at a Tier 3 data centre, where some of the A40 GPU cards are being applied to cloud computing.

The Ethereum ‘merge’ is coming and is about to cause crucial impacts on the crypto landscape, with miners considered to be one of the most affected groups.  

The merge will shift from Ethereum’s “proof of work” to a verification mechanism known as “proof of stake.”

With the change to PoS (the “proof of stake”), crypto miners who have sunk billions of dollars into computing equipment dedicated to the “proof of work” mechanism, will soon either be out of work or need to shift to other blockchains in order to make money through mining.  

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Hive Blockchain Says Produced 278.5 BTC and 2,542 ETH in June

Hive Blockchain stated that it currently holds 3,239 bitcoin (BTC) and 7,667 Ethereum (ETH) after producing 278.5 BTC and 2,542 ETH in June. - 2022-07-08T102730.596.jpg

The crypto mining firm also stated that it increased its bitcoin mining hash rate from 2.17 exahash per second (EH/s) to 2.24 EH/s, however, the capacity for Ethereum mining slightly dropped from 6.26 (TH/s) at the beginning of June to 6.0 TH/s, as some miners were taken offline temporarily for layout optimization due to higher summer temperatures.

Hive is confident in the face of market volatility, and CEO Frank Holmes said the company has weathered “crypto winters” before.

As per Holmes, the company has strived to “maintain a strong balance sheet of Bitcoin and Ethereum which is completely unlevered,” and the business remains cash flow positive with no “significant debt.”

“We are cautious, seeking out opportunities and remain firm in our belief that Bitcoin and Ethereum will survive to thrive again after all the over-leveraged players are forced out of business,” Holmes said.

Besides the June report, Hive Blockchain also stated plans to expand in the coming future by selling the current production of BTC and ETH.

“We are able to undertake this strategy and maintain coin inventory levels as a result of keeping a strong balance sheet position and never having entered into any agreements whereby our coin holdings have been staked, put up as collateral, or otherwise put at risk of being called by another party to cover a position due to the current decline in the price of cryptocurrency,” said Hive CFO Darcy Daubaras.

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