Bitcoin Mining uses a higher mix of sustainable energy than any major country or industry

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July 6, 2021

As of Thursday, HIVE Blockchain Technologies is listed on the Nasdaq (HVBT), providing US investors with access to Bitcoin and Ether mining.

As many of you know, HIVE became the first crypto miner to be publicly traded when it debuted on the TSX Venture Exchange almost four years ago. Its listing on the Nasdaq, the world’s leading technology exchange, represents the culmination of months of hard work by our team. I would like to thank the shareholders for their loyalty and their patience.

Having said that, I think the best is yet to come. Was of the view that Ether 2.0’s Proof of Stake (PoS) will take at least two more years before Ether mining is no longer financially attractive. That’s part of the reason we’ve expanded our enterprise cloud services focused on high performance computing (HPC) workloads like gaming, artificial intelligence (AI), and movie animation.

To this end, HIVE has just agreed to join the NVIDIA Partner Network (NPN) as a cloud service provider, giving us access to the ecosystem, partners, customers and deep industry expertise of technology. We also significantly increased our compute capacity by purchasing NVIDIA graphics processing units (GPUs) for a total contract value of over $ 66 million.

In the meantime, HIVE continues to keep its new Bitcoin and Ether, mined using only 100% green renewable energy, in secure storage.

It is important for investors to keep in mind that the crypto mining space is always incredibly volatile. While gold has a daily standard deviation of 1%, Bitcoin has one of 6%. By introducing our enterprise cloud service offerings, we hope to reduce some of HIVE’s volatility while maintaining attractive margins.

The Bitcoin network is a much bigger consumer of sustainable energy than the false reports

In addition to being an NVIDIA cloud service provider, HIVE is proud to be a founding member of the Bitcoin Mining Council (BMC), the group created in May after recent talks between North American Bitcoin miners Elon Musk and the MicroStrategy co-founder and CEO Michael Saylor. .

Over the past two months, Bitcoin’s global mining network has come under scrutiny for its power consumption. Critics, notably Elon Musk, have attempted to argue that Bitcoin uses an unacceptable amount of electricity generated by fossil fuels, with Musk going so far as to reverse Tesla’s policy of accepting cryptocurrency as a form of payment.

Recently compiled research, however, proves just how unfounded these reviews really are. In its very first report, the BMC publishes the results of its survey of more than 32% of the current global Bitcoin network, finding that participants use electricity with a sustainable energy mix of 67%. Based on this data, the total sustainable energy mix could reach 56%, making Bitcoin mining one of the most sustainable industries in the world.

To put this in perspective, the United States currently uses electricity that is only 30.5% sustainable. For China, this figure is less than 15%.

Take a look at the beautiful painting below. Fake news makes Bitcoin the biggest energy consumer on the planet. On the contrary, its energy consumption is negligible, as it consumes only 0.117% of total world electricity.

Global energy consumption for Bitcoin mining is negligible

Bitcoin Mining Council, USGI

There can be many reasons people are spreading misinformation about Bitcoin. Much of the misinformation may come from Ripple, which is currently under investigation by the Securities and Exchange Commission (SEC). The fintech company is believed to employ a large number of bots on Twitter and other social media platforms in an attempt to demolish Bitcoin in favor of its own XRP coin.

Roads and skies occupied this July 4th

The past weekend marked the independence of the Americas from Britain and in many ways it also marked the independence of American families from the pandemic. The American Automobile Association (AAA) forecast vacation travel volume to rival that of 2019, with 47.7 million people taking the roads and skies. Travel by car may have even exceeded 2019 levels.

Passenger air traffic, meanwhile, is expected to reach 90% of 2019 volume, bringing it closer to pre-pandemic levels as we have seen so far. In June, more than 56.7 million people were screened at U.S. airports, the highest number since February 2020, shortly before the entire global economy came to a standstill.

Air passenger numbers hit highest level since last year

TSA, USGI

Surprisingly strong demand is reflected in the performance of energy and manufacturing stocks in the first half of 2021. Leaders in the S&P 500 included oil exploration and production such as Marathon Oil (whose shares doubled in the six months ended 30 June), Texas Diamondback Energy and Devon Energy, as well as manufacturers such as power producer Generac and steel producer Nucor.

Energy and Manufacturing stocks dominated the S&P 500

Bloomberg, USGI Despite labor shortages, factories have grown at a record pace

All this high demand has put a strain on gas stations, some of which have already started to experience blackouts before the weekend of July 4. To be clear, this is the result of a labor shortage, not a fuel shortage. According to National Tank Truck Carriers, the industry is currently short of 50,000 drivers.

Factories here and abroad also continue to experience a labor shortage, with suppliers struggling to keep up with a wave of new orders. Nevertheless, factories saw very strong growth in June, with some surveys pointing to record or near-record levels of expansion. The IHS Markit Manufacturing PMI stood at 62.1, unchanged from the May record, while the ISM Manufacturing PMI edged down from 61.2 to 60.6.

US manufacturers grow despite labor stocks

IHS Markit, ISM, USGI

One of the most exciting manufacturing orders in recent memory came last week when United Airlines placed an order for an incredible 270 new aircraft, including 200 Boeing Max and 70 Airbus 321neos. This represents the largest such carrier order in the company’s history, and I see it as extremely optimistic not only for United and Boeing, but for the commercial airline industry as a whole. United is positioning itself to capture market share as vaccination rates rise, travel restrictions are lifted and economies fully reopen.

All opinions expressed and data provided are subject to change without notice. Some of these opinions may not be suitable for all investors. By clicking on the link (s) above, you will be redirected to one or more third party websites. US Global Investors does not endorse all of the information provided by this site (s) and is not responsible for its / their content.

Frank Holmes has been appointed non-executive chairman of the board of directors of HIVE Blockchain Technologies. Mr. Holmes and US Global Investors both own shares of HIVE. As of August 31, 2018, Frank Holmes is the Interim Executive Chairman of HIVE.

Standard deviation is a measure of how dispersed a data set is from its mean. The more dispersed the data, the greater the gap. Standard deviation is also known as historical volatility.

The S&P 500 Stock Index is a widely recognized capitalization-weighted index of 500 common stock prices of US companies. The Purchasing Managers Index is an indicator of the economic health of the manufacturing sector. The PMI index is based on five major indicators: new orders, inventory levels, production, supplier deliveries and the employment environment.

Holdings may change daily. Holdings are reported at the end of the most recent quarter. The following securities mentioned were held by one or more accounts managed by US Global Investors as of 03/30/2021: Tesla Inc., United Airlines Holdings Inc.

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