Why HIVE Blockchain Technologies Ltd. (HIVE) stock is gloomy in the premarket?

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Shares of the HIVE Blockchain Technologies Ltd. (HIVE) stock were gloomy in the premarket today on December 6, 2021. HIVE stock price saw a downtrend of 10.93% to drop at $2.77 a share at the time of this writing. The stock was also gloomy in the previous trade and went down by 9.33% at closing with a $3.11 per share price. Let’s dig in to understand the reason behind this fall.

What’s Happening?

It seems that HIVE stock is facing a drop due to falling crypto prices. Bitcoin saw a massive drop in the recent days after which many blockchain-related stocks saw a drop in the stock market. As of this writing, the price of Bitcoin was 48,747.84 representing a 1.69% drop. In the last week, World Health Organization reported the presence of new Covid-19 variant Omicron in 38 countries after which the crypto world witnessed a massive drop. Due to these circumstances, the sentiment in the social media platforms for HIVE stock is not positive thus resulting in the falling of its per-share price.

Performance of HIVE stock in November 2021

On December 3, 2021, HIVE Blockchain released the update regarding its production in November 2021. According to the report, the HIVE stock produced 218 BTC and 2,334 ETH. The USD Bitcoin mining revenue was $13.2M and USD Ethereum mining revenue was $10.4M. The Bitcoin mining capacity was 1.31 ExaHash and Ethereum mining capacity was 4.36 TeraHash. The total revenue of the company was $23.6M. Total Bitcoin equivalent production of the HIVE stock in November 2021 was 389 BTC representing a per day average of 13 Bitcoin Equivalent.

HIVE reported network difficulty of 5% and 8% respectively for Bitcoin and Ethereum in November 2021. The increased difficulty resulted in less production as compared to the previous month.

Investment in Titan by HIVE stock

At the start of December 2021, HIVE stock announced that it is going to invest in Titan.IO, Inc. Titan is the blockchain software company and the creator of decentralized mining marketplace Lumerin. HIVE Blockchain will invest in Titan in such a way that it will issue shares and warrants having a value of USD 5 million at CAD $6/share to Titan securities.

Conclusion:

Things are not going well for HIVE stock as far as market sentiment is concerned. The surge of the Covid-19 variant Omicron has disrupted both stock market as well as the crypto market.

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