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6th of July, 2021

HIVE Blockchain Technologies (HVBT) was listed on Nasdaq last Thursday, giving US investors access to Bitcoin and Ether mining.
When it debuted on the TSX Venture about four years ago, HIVE became the first crypto miner to be traded publicly. Our team’s months of hard work have paid off with its up-listing to Nasdaq, the world’s premier tech stock exchange. I’d want to express my gratitude to stockholders for their patience and loyalty.
Having said that, I am confident that the best is yet to come. We believe it will take at least another two years for Ether 2.0 Proof of Stake (PoS) mining to become financially unprofitable. That’s one of the reasons we’ve been focusing on high-performance computing (HPC) workloads like gaming, artificial intelligence (AI), and movie animation in our enterprise cloud services.
To that aim, HIVE has decided to become a cloud service provider in the NVIDIA Partner Network (NPN), giving us access to the tech company’s ecosystem, partners, customers, and extensive industry expertise. We also purchased NVIDIA graphics processing units (GPUs) for more than $66 million, which significantly improved our computing power.
Meanwhile, HIVE keeps its newly generated Bitcoin and Ether in secure storage, having been mined using only 100 percent green renewable energy.
It’s critical for investors to remember that the crypto mining industry is still quite volatile. Bitcoin has a daily standard deviation of +-6 percent, whereas gold has a daily standard deviation of +-1 percent. We expect to reduce some of HIVE’s volatility while preserving its excellent margins by introducing our enterprise cloud service solutions.
ADDITIONAL INFORMATION FOR YOU
In addition to being an NVIDIA cloud service provider, HIVE is a founding member of the Bitcoin Mining Council (BMC), which was formed in May following recent discussions between North American Bitcoin miners, Elon Musk, and MicroStrategy co-founder and CEO Michael Saylor.
The global Bitcoin mining network has come under increased criticism in recent months because to its high energy consumption. Critics, most notably Elon Musk, have argued that Bitcoin consumes an unsustainable quantity of fossil-fuel-generated electricity, with Musk even canceling Tesla’s policy of accepting Bitcoin as a means of payment.
New research, on the other hand, shows how unjustified these arguments are. The BMC reveals the results of its study of over 32% of the existing global Bitcoin network in its inaugural report, revealing that members use electricity with a 67 percent sustainable power mix. According to that statistics, Bitcoin mining could have a total sustainable power mix of up to 56 percent, making it one of the most environmentally friendly industries on the planet.
To put it in context, the United States currently consumes electricity that is only 30.5 percent renewable. In China, the percentage is less than 15%.
Take a look at the incredible graph below. Fake news portrays Bitcoin as the world’s largest energy guzzler. On the contrary, it uses very little energy, accounting for only 0.117 percent of total global electricity use.

Bitcoin mining consumes very little energy globally.
USGI, Bitcoin Mining Council

There could be a variety of reasons why people propagate Bitcoin disinformation. Ripple, which is now under investigation by the Securities and Exchange Commission, may be the source of much of the misinformation (SEC). The fintech company is thought to be using a large number of bots on Twitter and other social media sites to devalue Bitcoin in favor of its own XRP token.
This past weekend recognized America’s independence from the United Kingdom, and in many respects, it also signaled the end of the plague for American families. With 47.7 million people going to the roads and air, the American Automobile Association (AAA) predicted that holiday travel volume would surpass that of 2019. Travel by car may have even surpassed 2019 levels.
Meanwhile, air passenger traffic is predicted to increase by 90% in 2020, getting it as close to pre-pandemic levels as we’ve seen so far. More than 56.7 million individuals were inspected at US airports in June, the highest number since February 2020, just before the global economy fell into lockdown.

Passenger numbers are at an all-time high compared to last year.
TSA and USGI

The success of energy and manufacturing equities in the first half of 2021 reflects unexpectedly robust demand. Oil exploration and production companies like Marathon Oil (whose stock doubled in the six months ended June 30), Texas-based Diamondback Energy, and Devon Energy, as well as manufacturers like Generac and Nucor, were among the S&P 500’s top performers.

The S&P 500 was led by energy and manufacturing stocks.
USGI, Bloomberg

All of this high demand has put a burden on gas stations, with some experiencing outages as early as the Fourth of July weekend. To be clear, this is due to a manpower scarcity rather than a lack of fuel. National Tank Truck Carriers estimates that the industry is now short 50,000 drivers.
Suppliers are struggling to keep up with a flood of new orders, which is causing a labor shortage in factories both here and abroad. Despite this, factories reported very robust growth in June, with some surveys predicting expansion rates that were near-record highs. The IHS Markit Manufacturing PMI was steady from May’s record level of 62.1, while the ISM Manufacturing PMI fell from 61.2 to 60.6.

Despite workforce shortages, US manufacturers are booming.
USGI, IHS Markit, ISM

United Airlines placed an order for 270 new aircraft, including 200 Boeing Max jets and 70 Airbus 321neos, last week, in one of the most exciting manufacturing deals in recent memory. This is the carrier’s largest purchase ever, and I regard it as incredibly optimistic not only for United and Boeing, but for the whole commercial airline sector. As vaccination rates climb, travel restrictions are relaxed, and economies reopen, United is positioning itself to gain market share.
All opinions and statistics are subject to change at any time without notice. Some of these viewpoints may not be suitable for all investors. You will be led to a third-party website by clicking the link(s) above (s). The information provided by this/these website(s) is not endorsed by U.S. Global Investors, and it is not responsible for its/their content.
Frank Holmes has been named non-executive chairman of HIVE Blockchain Technologies’ Board of Directors. HIVE is owned by both Mr. Holmes and U.S. Global Investors. Frank Holmes has been appointed interim executive chairman of HIVE as of August 31, 2018.
The standard deviation is a measure of how far a set of data deviates from its mean. The bigger the variance, the more dispersed the data is. Historical volatility is another name for standard deviation.
The S&P 500 Stock Index is a well-known capitalization-weighted index that tracks the values of 500 common stocks in U.S. corporations. The Purchasing Manager’s Index (PMI) is a measure of the manufacturing sector’s economic health. New orders, inventory levels, production, supplier deliveries, and the employment environment are the five primary indicators that make up the PMI index.
Holdings are subject to change on a daily basis. The most recent quarter’s holdings are reported. As of March 30, 2021, one or more accounts managed by U.S. Global Investors held the following securities: United Airlines Holdings Inc., Tesla Inc./nRead More

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