Vancouver-based cryptocurrency miner Hive Blockchain has reported a net loss of $90.4 million for the latest quarter. The announcement comes after the company’s stock price fell sharply in recent weeks, amid a wider slump in the cryptocurrency market.
Hive Blockchain reported revenues of $13.7 million for the quarter, up from $9.2 million in the same period last year. However, the increase in revenues was more than offset by higher operating expenses, which rose to $92.6 million from $6.6 million last year.
The company blamed the loss on a combination of lower cryptocurrency prices and higher expenses related to its mining operations. Hive said it was hit particularly hard by the decline in Ethereum prices, which fell by more than 50% during the quarter.
Despite the poor financial results, Hive Blockchain said it was continuing to invest in new mining equipment and expand its operations. The company said it had recently acquired new facilities in Canada and Sweden, and was also in the process of expanding its existing facilities in Iceland and Sweden.
“Hive is committed to being a leader in the cryptocurrency mining space, and we believe that our investments in new equipment and facilities will position us well for the future,” said Frank Holmes, the company’s executive chairman.
The news of Hive Blockchain’s net loss comes as the broader cryptocurrency market has been in turmoil in recent weeks. Bitcoin, the largest cryptocurrency by market capitalization, has fallen by more than 20% in the past month, while other major cryptocurrencies like Ethereum and Binance Coin have also seen significant declines.
Despite the recent downturn, many investors remain bullish on the long-term prospects of cryptocurrencies and blockchain technology. Some experts believe that the current market correction is a natural part of the asset class’s evolution, and that prices will eventually recover and continue to rise over time.
