HIVE Digital (NASDAQ:HIVE) (TSE:HIVE) shares gained nearly 2% today after the crypto miner delivered a robust performance for the third quarter. Revenue jumped by 37.3% sequentially to $31.3 million, exceeding estimates by $3.85 million. The company produced a total of 830 Bitcoin (BTC-USD) in Q3.
During the quarter, HIVE’s gross operating margin expanded to 36% from 20% in the prior quarter. This translated into gross operating income jumping to $11.3 million from $4.6 million in Q2. Additionally, HIVE generated revenue of $900,000 from its GPU-powered High-Performance Computing business unit.
Notably, HIVE mined an average of 9 Bitcoins per day in Q3. This means the company accounts for about 1% of the hash rate of the entire BTC mining network. Further, the company’s current HODL (Hold on For Dear Life) position stands at over 2,000 BTC. At the same time, its average cost of production per Bitcoin stood at $22,607 in Q3. Net loss per share for the quarter came in at $0.08 versus a net loss per share of $1.13 in the year-ago period.
Further, HIVE has been preparing for the upcoming Bitcoin halving in April. It has upgraded its ASIC fleet to improve efficiency and lower average production costs per BTC. The optimism around Bitcoin’s halving and soaring cryptocurrency prices has pushed HIVE’s share price nearly 27% higher over the past five sessions.
Is HIVE Stock a Buy, Sell, or a Hold?
Despite these price gains, the stock remains nearly 15% lower over the past six months. Overall, the Street has a Moderate Buy consensus rating on HIVE Digital, and the average HIVE price target of $6.17 points to a 59.8% potential upside in the stock.
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