HIVE Blockchain Technologies (HIVE – Research Report), the Financial sector company, was revisited by a Wall Street analyst today. Analyst Mike Colonnese from H.C. Wainwright downgraded the rating on the stock to a Hold and gave it a $3.50 price target.
Mike Colonnese has given his Hold rating for HIVE Blockchain Technologies due to a variety of factors.
He indicated that the company’s earnings results fell short of his estimates, and its management had postponed its hash rate guidance for the end of 2023 to 2024. This delay, according to Colonnese, could result in HIVE losing market share as the network hash rate continues to grow rapidly. Furthermore, the company’s direct production costs have increased significantly over the past three quarters, largely due to the abolition of a reduced energy tax for data center operations in Sweden.
In addition, HIVE’s high production costs and relatively low fleet efficiency could put the company in a difficult position when the block reward miners receive is halved next April. As a result, Colonnese believes it’s sensible to take a cautious approach until there is a larger revenue contribution from the high-performance computing business, a decrease in production costs, or an increase in BTC price levels. Despite these challenges, he acknowledged HIVE’s operational prowess and its efforts to improve fleet efficiency by acquiring newer generation rigs. Finally, he touched on the rapid growth of the company’s high-performance computing business, though it currently represents a small portion of total revenues.
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HIVE Blockchain Technologies (HIVE) Company Description:
HIVE Blockchain Technologies Ltd. engages in building a bridge from the blockchain sector to traditional capital markets. It also involves in the production of mined cryptocurrency like Ethereum around the clock. Its project include Iceland Cryptocurrency Mining. The company was founded on June 24, 1987 and is headquartered in Vancouver, Canada.
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