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  5. HIVE: HIVE SHARE PRICE NOW IS $4. [HIVE Digital Technologies Ltd.]
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Q: HIVE SHARE PRICE NOW IS $4.42 AS OPPOSED TO $7.12 IN NOV. 2024. ITS SHARE PRICE LOST ABOUT 40% DESPITE BIT COIN GAINING APPROX 10 %. SINCE. REALLY I CAN'T FIGURE WHATS GOING ON. COULD U GIVE ME YOUR OPINION THANKS
Asked by terrance on January 28, 2025
5i Research Answer:

The bitcoin miners, while having exposure to bitcoin, are also subject to the tough economics of bitcoin mining. Miners solve blocks and earn bitcoin as a reward in exchange for their computing power. The bitcoin rewards that they receive for 'working' get cut in half every four years, which naturally forces down their revenues, unless the price of bitcoin rises more than 2X from the previous cycle. Most miners continue to consolidate sideways, and HIVE has been ranging between $3 and $7 for a couple of years. We feel that there are many positive tailwinds for these names (a pro-crypto US administration, more clear regulations, etc.), and it is unclear what will cause these miners to breakout of these ranges, but in previous cycles the miners tend to make most of their gains in a matter of days/weeks, vs. Bitcoins more steady and consistent increases.