Hive Blockchain’s 5-to-1 share consolidation in effect. A buy alert?

Published on May 24, 2022 11:41 AM EDT

Hive Blockchain’s 5-to-1 share consolidation in effect. A buy alert? — Image source: © 2022 Kalkine Media®

Highlights

Hive Blockchain Technologies Ltd (TSXV: HIVE) initiated its 5-to-1 share consolidation on Tuesday, May 24

The company believes that this share consolidation will help it eliminate penny stock stigma

It added that these will help enhance its institutional visibility, expand liquidity and provide long-term value to its shareholders

Hive Blockchain Technologies Ltd (TSXV: HIVE) has been trending on the stock markets as the crypto miner announced its 5-to-1 share consolidation goes into effect on Tuesday, May 24, proposed earlier this month on May 10.

Hive Blockchain believes that this share consolidation will increase its stock prices on the Toronto Stock Exchange Venture (TSXV) and NASDAQ and will help it eliminate penny stock stigma. It added that these will help enhance its institutional visibility, expand liquidity and provide long-term value to its shareholders.

Hive Blockchain claims to be among the most profitable and fastest growing digital asset miner across the globe. With its efforts to increase visibility in the stock market, let us glance at Hive Blockchain’s financials and stock performance.

Hive Blockchain Technologies Ltd’s (TSXV: HIVE) April 2022 production update

Hive Blockchain produced 268.8 Bitcoin (BTC) in April this year. It recorded a BTC mining capacity of 2.0 Exahash in the starting of April, which later rose to 2.15 Exahash as of April 30.

The digital asset miner also recorded a production of 2,537 Ethereum (ETH) in April. The company also improved its ETH mining capacity to 6.26 Terahash as of April 30 compared to 6.1 Terahash recorded in the beginning of this month.

The cryptocurrency mining firm also reported reaching a total BTC Equivalent production of 458.3 BTC in April 2022, with an average daily production of 15.3 BTC Equivalent and a BTC Equivalent Hashrate of 3.4 Exahash at the end of April. The company also said that currently, it earns revenue of about US$600,000 per day from coin production.

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Hive Blockchain Technologies stock performance

Having closed at C$ 5.80 apiece on Friday, May 20, the HIVE stock was trading at C$ 4.91 per share at 10:03 AM EST on Tuesday, May 24. Stocks of Hive Blockchain have slipped by almost 92 per cent in the last year.

Notably, Hive Blockchain’s return on equity (ROE) was nearly 63 per cent and return on assets (ROA) over 55 per cent. Generally, a higher ROE and ROA indicate the company is generating higher returns relative to its equity and capital invested in assets, respectively.

Bottom line

Hive Blockchain revealed that BTC and ETF network difficulty grew as high as 5.5 per cent and five per cent respectively in April while providing its production update for the month. The company said that these difficulties continue to affect its gross profit margins. However, the company is focused on building its BTC production strategically to provide the “highest” return on invested capital (ROIC) to its shareholders.

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Please note, the above content constitutes a very preliminary observation based on the industry, and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks. 

Kajal Jain

Author

Kajal Jain - Analyst
623 Posts
Kajal is a commerce graduate with expertise in the financial corporate sector. At Kalkine, she writes on Canadian equities and markets. In her free time, she enjoys music and gardening and likes to travel....

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