Evolution in Bitcoin Mining: HIVE’s Sustainable Approach to Growth | European Blockchain Convention

foreign [Music] killick I'm the President Chief Executive Officer of high blockchain where is the presentation ah there we go okay good so uh today we're going to talk about our approach to evolving in the crypto mining ecosystem we're listed on NASDAQ under the ticker hive as I mentioned I'm the president CEO of Hive I actually got involved in crypto in 2017. I was inspired by Hive and I founded a company raised 30 million bucks and took it public as CEO and I joined Hive in summer of 2021 as president and CEO and got promoted to CEO a couple months ago it's been an amazing journey hive's a much bigger company it's raised hundreds of millions of dollars and has gone on to be achieve a lot of first in the industry which we're going to go over um now one thing about crypto mining stocks is that they've got a lot of volatility which if you uh are a Savvy investor can earn you parabolic returns it's even more volatile than Bitcoin as you could see here looking at a standard deviation on um December 30th 2022 you could see the plus minus is 19 whereas bitcoin's 10 percent so a couple big milestones in this last year um we realigned our long-term strategy with our strategic Partners Block Base and barrage we're instrumental to Our Success we hit 2x a hash of Bitcoin mining capacity and six terahash of ethereum mining so we were one of the largest ethereum minors in the world over one percent of the entire network and in addition to that over one percent of the Bitcoin Network we were one of the four companies globally that had a strategic partnership with Intel develop a Bitcoin mining rig and we were the first and only company to successfully deliver manufacture and deploy um a Bitcoin mining rig with Intel and my appointment so a little bit um hived by the numbers in January we mined over 260 Bitcoin uh we had ended the month with almost 2.7 x hash which again is over one percent of the entire network and we have over 2 400 Bitcoin green and clean in our balance sheet and we did a massive upgrade one of our biggest upgrades in history over 6 700 New Generation Asics of that 3500 were s19j Pros if you guys are familiar with that and um our Buzz miners which are powered by the Intel block scale chip so 3200 of those and so instead of expanding during the bear Market what we did is we actually upgraded a lot of the older equipment we have being a legacy Miner since 2017 hivis had to evolve through the various bear markets and so when you upgrade the efficiency of your machines you improve your gross mining margin so you have a lower Bitcoin Break Even price a lot of companies in the sector have just tried to aggressively scale take on debt and you see a lot of big names going bankrupt I'm not going to name them but they're all over coindesk you could look it up and we've navigated the bear Market uh very intelligently I'm incredibly proud of my team the unsung heroes of high bar coders our Network technicians our data center technicians we've got uh brilliant general counsel who was on a panel yesterday and of course lovely Ohana who's going to chat a little bit so here's one thing that's really cool that we did in December so we have three resources that we manage at Hive one is energy the other is capital and the third is technology so when I say manage energy we can either use the energy to hash and mine Bitcoin or in some cases we could sell it back to the Grid in December alone we made 3.1 million in profit selling back to the grid that's equivalent of mining over 800 Bitcoin right far more lucrative to sell the energy back to the grid now in January we made 180 000 selling back to the grid right so you could see how we adjust our deployment of energy and of course as a public company we have to adjust our deployment of capital and our third Tech our third resource is our technology stack as evidenced by The Hive Buzz minor so again we were the first company globally and so far the only company that has successfully taken an Asic chip and built an entire Bitcoin mining rig system around it which is the uh Hive Buzz Miner and we have them running in Sweden and New Brunswick by the way we've got two data centers in Iceland two in Sweden and two in Canada we're all green in clean power uh decentralized globally uh which is a strategy and um here are some of the firsts that Hive is known for so again the very first public crypto Miner ever uh the first to mine Bitcoin and ethereum were listed on NASDAQ were listed in Frankfurt and were listed in Canada that's a first uh we're the first to put data centers on our balance sheet we own the land we built New Brunswick and we were the first to be green energy focused and as mentioned we're the first to do our own Bitcoin mining rig and that's that's a key distinction because a lot of companies have tried but a lot have failed it's it's very challenging um so we're going to get into the financials a little bit oh there's a picture with me on our prototype um so just analytically Bitcoin is looking a little overbought right now we always put these sort of disclosures in our financial presentations and it's the same way you could see sort of how Hive stock parabolically follows Bitcoin um and so what you could see here is um again these are some more financial slides for you know the the Keen investors out there as you see uh difficulty go up and bitcoin price go down what that does is your mining margins go down so on the right gross mining margin if you look at the dark blue bars um you could see that our gross mining margin has reduced over time but nevertheless we've managed to increase the amount of Bitcoin on our balance sheet and how we do that is we actually focus on mining for profit not for scale so we have 140 megawatts of infrastructure globally but in the last quarter we only utilized 100 megawatts of it why because in some case we were actually selling power back to the grid and in other cases we will refrain from Mining and using electrons if our variable power price is high and only mine in our fixed power contracts right so there's a lot there's a lot of math we do a lot of excel which I'm one of my favorite things about my job and I'm super proud of my team I've got some of the brightest guides in the history with huddle uh daily uh and you could see by the Numbers uh you know the last four quarters 70 million a year ago the most recent quarters about 30 million and nevertheless we've been mining more and more Bitcoin because we've been growing with time and it's key we don't have any debt on our balance sheet where a lot of minors have taken debt or they've encumbered their Bitcoin balance by borrowing against it we haven't done any of that um as I mentioned our Bitcoin huddle has grown significantly and um a big part of the hive story is our focus on ESG and this is really important because I think as Bitcoin mining evolves companies need to be more mindful of the communities that they participate in you can't just go in and buy the cheap power you have to invest in the community you have to be mindful and johanna's going to talk a little bit about some of the initiatives that we have and so by the way you know the kind of pillars of mining Bitcoin are you want cheap electricity uh cool dry climate and of course good good connectivity which is exemplified in countries like Iceland Sweden and Canada and so ESG is sort of a new mandate that a lot of Institutions have for investing so it's environment social and governance and so Johan is going to talk about how we tick those boxes Johanna yeah thank you thanks very much so uh what we're seeing here is the Bowden button craft fact Bowden height and hydro plant at the very northern part of Sweden and this is the power plant that is providing our facility a 32 megawatt facility with all its power we mostly across the company mine with hydropower but also a bit of wind and some geothermal power in Iceland and what is really interesting in in the areas that we're working especially in Sweden is that this is um stranded power so for the communities for the Grid it's really important uh that we are there we take advantage of of the stranded power and provide a revenue stream for the community for the grid provider and talking about the the grid uh Hive has become one of the biggest participants in a great balancing system where we um in in today's society where we get more and more dependent on uh on on energy and at the same time uh want to shift into renewable energy to be able to participate in such a balancing program where literally our unique data center allows us to within five seconds power down half of the the power that the system is required to meet uh these Peak demand uh moments that can happen when people come home from the work and and want to plug in in their charge their car and turn on the on the dishwasher uh within 30 seconds we have to commit to power down the entire amount and that could be up to 20 megawatts that we can turn off on the moment's notice and share with the grid to balance that that um that system another thing is that you have seen that we work in cold areas because our computer Fleet our mining Fleet is generating a lot of warm uh warm air and so if you harvest that heat in the right way in these cold climates it's actually a very nice Resource as can be seen in in Sweden where this year we're gonna we have partnered together with a company called actira and we are going to provide the our waste heat to a 9 000 square meter uh large Greenhouse that will produce about 700 tons of cucumbers and over 300 tons of tomatoes each year and we're talking a very northern part of of Sweden we're already harvesting the the waste heat in lechute Canada just basically pushing that heat from our data center into the neighbor bring a large facility a 4 000 square meter facility so that we provide that base heat for them Revenue stream for us and and at the same time doing good for the environment uh and lastly time's up but um uh mining is unique in another way as well we're scalable we're mobile and what we're looking at doing in Sweden is basically put a container solution uh uh submission cooling which is very energy efficient uh right by the local hockey Stadium that's the hive hockey Stadium to provide also the base heat for that facility and saving the the community about two three hundred thousand dollars a year so and also Johanna this Stadium we've donated to uh it's called the Hive Arenas you could see that's our logo the logos on the jerseys and we also allow all the kids in Bowden to go watch the games for free after school so they have something to do encourage them to get involved with Athletics and the Bowdoin hockey team has uh had two players go on to play in the Stanley Cup so this is this is you know a serious Swedish hockeytown so we've also sponsored a local sports team in New Brunswick so this covers the social aspect of ESG as well the environmental that Johanna was talking about all right thank you any questions or I don't know come talk to us after get a hat we've got really cool hats