Already very quiet on cryptocurrencies and related assets, the market turns even more bearish on the company following its first quarter earnings release.
Cryptocurrency mining company HIVE Blockchain Technologies (HIVE 2.43%) failed to discover a stock market win on Wednesday. The company’s share price plunged nearly 8% the day after it released its quarterly results, which revealed a deep net loss, even though it managed to grow revenue at a double-digit rate.
For HIVE’s first quarter of its fiscal 2023 year, the company posted revenue of just over $44 million for an improvement of approximately 13% over the same period last year. However, the story was much different in the bottom line, as the company turned sharply to a sharp net loss of $95.3 million in vivid contrast to the first quarter 2022 profit of $23.5 million.
Any observer of the cryptocurrency space can surmise why HIVE’s loss was so deep. Basically, this was due to the falling value of the three high-profile coins that the company has been active in during that time period: Bitcoin, Ethereum, and Ethereum Classic.
The crypto winter has been freezing. As a result, in this last quarter, HIVE had to drastically revalue its holdings. He also lost a considerable amount on the sale of coins. Together, these two items totaled a whopping over $155 million in spending.
Few investors are excited about cryptocurrencies and cryptocurrency stocks right now, and in HIVE’s case, this is compounded by those gallons of fresh red ink on the bottom line. Sentiment has to improve in at least one of those three currencies for the company to have any hope of fully escaping this latest bear hug.
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