Good morning, everyone. I would like to welcome you to today's webcast reviewing HIVE Blockchain Technologies Results for the Third Quarter into December 31st, 2020. My name is Holly Schoenfeld. On slide number two, except for the statements of historical fact, this presentation contains forward-looking information within the meaning of the applicable Canadian securities legislation that is based on expectations, estimates, and assumptions as of the date of this presentation. Please see the corresponding slide number two on your screen for full disclosures. I am pleased to welcome the presenters for today's program. Frank Holmes, Interim CEO and Executive Chairman, Darcy Daubaras, Chief Financial Officer, and Tobias Ebel, Director. Slide number four. I would like to run through a brief overview of the company. HIVE is the first publicly listed blockchain infrastructure company, listed on the TSX Venture Exchange since September of 2017, raising CAD 200 million.
HIVE provides shareholders with exposure to digital currency mining as well as a portfolio of crypto coins. Low working capital requirements does not require immediate sale of mined coins. Lastly, HIVE has operations situated in cool jurisdictions with access to low-cost green and renewable energy. On slide number five, I think we all know that Bitcoin has topped CAD 57,000. On the next slide, we can see that Ethereum rose above CAD 1,900. We go to the next slide. I would like to hand the presentation over to Frank Holmes to start us off. Frank?
Thank you, Holly. Those gorgeous hats there, we'll have them soon for the shareholders that are showing so much enthusiasm. It's a record to over 1,500 people listening to this webcast, and I have never received so many emails asking questions. I'm going to try to, Darcy and I and Toby, weave in and out of the storytelling on these slides to give you the information. Hopefully, we answer the most dominant questions. I'm talking about this morning, over 100 emails of questions. I do not think we'll have time to answer everything, but I hope that we can push them through this presentation. Next, please. One of the big parts that I've noticed is that there's really not in North America on the sell side, brokerage analysts that really understand cryptos.
The crypto mining, when I talk to them and understanding that it's all about revenue growth, both current and future revenue growth. This is a simple visual to try to understand the volatility on a daily basis is that crypto is, the coins of Bitcoin and Ethereum, are substantially more volatile than the S&P or gold. When you add that volatility to which your current hashing power, that is how much you're mining today versus equipment you've announced that you're going to buy in the future, your future potential hashing power, is what drives these stock prices. The biggest factor, just like gold stocks, it's what is the daily action of gold. For silver stocks, what is the daily price action of silver, dictates the various price actions of the underlying stocks. What we see is what your potentials for revenue and cash flow. Next, please.
I'm asked a lot what's better, to buy Ethereum or Bitcoin or buy HIVE stock, and this is just a classic example. I've seen this before in the gold and silver space, where the stocks can far outperform when they have big leverage, and they can hold inventory, which we do. Last year, HIVE far outperformed a spectacular move in Ethereum. Interesting enough, Ethereum outperformed Bitcoin and far outperformed gold. Next, please. This is comparing to other companies that get lots of attention in the capital markets. Riot, Grayscale Bitcoin Trust, Hut 8, and Bitfarms in Canada. Riot came right behind us in the U.S. in going public. Last year, we far outperformed, as you can see.
I think there's a big reason for it, is that the three of us that are speaking today have been on a regular basis, even during crypto winter, to communicate how we were surviving and still waiting to turn the corner, and that created a very strong loyal shareholder base. I have never also received so many emails on shareholders that bought more after corrected, that didn't sell and capitulate, and are happy where we are because HIVE has made all-time highs. Anyone that's weathered through the storm from beginning of three years ago, definitely were able to come out whole. Next, please. Most of them made substantial buckets of capital. There's HIVE Blockchain versus the Bloomberg Galaxy Crypto Index versus the S&P/TSX Composite Index and NASDAQ Composite Index. As you can see, we've done a spectacular job in that relative performance. Next, please.
What's so important for all investors and traders is to recognize what the DNA of the daily volatility is. This basically says that approximately 70% of the time, it is a non-event for the S&P to go up or down 1%, and over 10 days, ±5%, and Bitcoin to go ±1% in one day, and over 10 days, ±3%. That's the normal breathing capacity. Bitcoin is 4x what the one-day volatility is of the S&P 500, and four times what gold is. Ethereum is six times the volatility of gold and the S&P 500. When we look over 10 trading days, it is 17% and 13% for Bitcoin and Ethereum.
The volatility is much greater, and anyone coming into this space must really respect that volatility, or they'll complain that they bought at a high day, or the best I've found is to buy after it's down two standard deviations in a day, is usually a safer entry to this market. What's most interesting to me is Tesla. Tesla has incredible DNA, like Ethereum DNA of volatility. Over 10 days it's even greater, and over one day it's greater than Ethereum. Gold stocks actually are a lot less volatile, which is a big surprise when you look at capital markets. A volatility is an important risk measurement that all investors should be cognizant and respect. Next, please. HIVE ranks higher than a competitor.
What's interesting was we were ranked number one in Canada, when it came to overall trading liquidity. We ranked number four in the U.S. as OTC. One of the number one questions we keep getting asked is getting listed in the U.S. It is a process. It's a two-step process. First you must go and do a registration filing for a 20-F. After that, or simultaneously, you can go and apply to be listed on either the New York Stock Exchange or NASDAQ. I have lots of experience in both exchanges. All I can share with you is that we have started the process of the 20-F application, which is a complete registration document to go with the SEC. This is key and most important. That's in full throttle.
We can never promise where we're going to get listed and when we're going to get listed, even though this is the most dominant question. It is in motion. Next, please.
Just quickly on the front page, just to agree, I guess hit a hammer on that one. It is a process and there's a lot of hurdles that we need to go through, regulatory reviews and everything. Even though we've started the process, as we know within this market, it's very volatile and the regulators can throw a wrench into any kind of a process that we have. Nothing's guaranteed, as we know in this industry.
HIVE, as I said earlier, was the most liquid stock in 2020, and I'm a big believer the reason for that is because it didn't matter if markets were up or down, we were always consistent in explaining where we are and what we're doing and how we're surviving and how we're thriving. Next, please. This is more visual to help you understand that the volumes that we traded is huge expansion from 2019. 2019 was known as Crypto Winter. It's when Bitcoin had fallen from, it's basically sort of the bottom phase of it, the beginning of the bull market but it really took off in 2020. How we grew from trading a half a billion shares, as you can see, to trading in Canada, 1.8 billion, trading in the U.S. almost a half a billion, and then in Germany, 20 million shares. Next, please.
We've been doing this continuous updating, and it's interesting that Kitco is known as the most sought-after sites for information on gold and silver. They've also been covering crypto, where HIVE was the first company in that space. U.S. Global and myself got involved with HIVE for a big reason, is because we're mining coins that the initial, the genesis coin, they call it, because it's the first coin, or the virgin coin. There's no AML, Anti-Money Laundering risks or issues with that or KYC, which has been a big hurdle until recently that ETFs in Canada have been launched allowing Bitcoin to go into them. Still, there's nothing that's happened in the U.S. We couldn't launch the ETF, so we went and put our energy, our capital, our reputation behind the launching of HIVE Blockchain, at the very beginning.
The first institutional money that came into HIVE. During this whole process, we've had a lot of gold investors that were frightened of buying crypto, either Bitcoin or Ethereum, on one of these exchanges, and all the negative stories of being hacking. They have used HIVE as a proxy b ecause we own coins at the same time as we're mining, we have tens of thousands of shareholders in over 80 countries around the world, that own HIVE, and it's their proxy. We've been able to deliver that. Recently at Stansberry Research, we also have been covering what that capital markets is and how they're sponsoring companies with HIVE. Daniela was the first to ever cover it when she was at Kitco, and now with Stansberry Research. She's done a great job articulating the growth and the risks. Next, please.
This strong media presence is very important, and what's interesting to watch is that the crypto world of the media, there's many more pages. In fact, they rank the top 100 reporters around the world. You do not get this in gold. You do not get this in the S&P, or technology stocks who are the best analysts, but you do get it in crypto. I've mentioned before in presentations that these crypto conferences, before COVID came along, were very expensive to attend. They were sold out, and it's a complete different ecosystem. Next, please. What we've, and I've written about this because our JETS ETF has experienced explosive growth with millennials coming in and then institutionals coming in. Millennials, there's been an exponential growth in using the internet and using YouTube in particular, and podcasts to capture information.
These are just some of the analysts that cover HIVE. They both say they're long, they've taken profits, they jump back and forth. I think what's interesting is that Vanity Lucas has done a phenomenal job of really capturing what those factors are. That is the momentum you have in growth, in revenue, and EBITDA, then what is your potential 12 months out for an expansion in your revenue and EBITDA. That if Bitcoin does go to $100,000 and Ethereum does go to $10,000 on the ratio of 10:1 , who would be the most profitable, who would have the biggest delta for growth and revenue? Vanity, I'm going to show you some of the visuals. I highly recommend you subscribe to him and just get a flavor for how to take a look and analyze.
These other analysts that are covering us, please, you can see, some have 13,000 subscribers, and others have 700,000 subscribers. I learned this in the JETS, in launching JETS ETF, that there were some people out there that just amazed me, a year ago, that there was 2.5 million subscribers that covered the airlines. Clearly, YouTube is the best way to capture information. Thank you. Next. Vanity, Lucas Schubert, who's based in Germany. He's an Energy Analyst, does a great job of capturing the flow. He rotates his portfolio every week. It's very aggressive how he rotates his holdings, but to me, it's most interesting as a way that he does capture the direction that drives investors in all these crypto stocks. Next, please. He always says at the beginning of his presentations, "Beware of the crowded market and scammers." There are.
There's new companies coming out that we hear about, and they too are the next best thing ever. It's very difficult. It's very difficult. It's actually much, much more difficult to become a crypto miner today than it was when we launched HIVE. Why is that? Because there's a big GPU shortage in chips. Chips you need to make graphics processing cards for making ASIC chips. There is a global shortage, and it is impacting the car industry, and it is impacting gaming. It is impacting everywhere. A lot of the two major suppliers in the capital markets of the equipment are sold out for this year. Fortunately, we've been able to navigate and go to boutique designers that make and sell equipment, and in addition to companies like Canaan, who this morning I had an early morning call at 6:00 A.M. with the CEO.
I think it's being that first mover of being able to capture that equipment. We've also noticed that what you would pay for the power, that is, what would you pay for a petahash, and that was trading CAD 20, and now they're trading CAD 60, CAD 70, CAD 80, CAD 90. We have not said that, we have not reported in detail who we're buying our equipment from because we see people getting cheap capital and trying to front run us and offer more. We've had to not be as transparent as we would like to be because of this front running that we're experiencing in this thirst and hunger to get equipment. Next, please. This is what Vanity does, and he's pointing out here his moving averages of cross mining margins and periods.
He has his own sort of algorithm that this is more looking at the current production profile, not the future production profile. HIVE always gets this healthy ranking, and I think we showed it today in our earnings release which Darcy is going to give you more detail on. Next, please. You can see here, it's another visual that he prints on a regular basis, and it gives this little algorithm of operating margin and looks at 10, 30, and 90 days. HIVE clearly, at this stage, has the most equipment out. We're also the only Ethereum miner, and Ethereum, we've stayed with it. I think it's been really critical for us as being able to show the capacity to generate profits. Next, please. This is looking in the future for all the announcements of mining equipment.
This comes from a U.K. company, Elwood Asset Management, who again said that it's the arbitrage between what you have today versus what your ability is in the future. What has happened here is that HIVE used to be in the far right side, and now we've shifted up. That with all these wonderful news releases of getting through 2,000 petahash to 2,400, that we are now ranking much higher in that we're ranked basically number three in our future capacity for Bitcoin. This excludes Ethereum because we are the only Ethereum miners. Next, please. The thing that we really want to point out to investors is to recognize the average cryptocurrency mining equipment delivery lead times. Bitmain has been probably the most challenging in getting things delivered on time for people.
We ourselves have experienced delays last year of equipment when it was supposed to come, to see that they just kick the ball down to the next month and next month until you get your equipment. I really hope in this year that the Antminer 19s that have been ordered do get delivered on a timely basis. Otherwise, it can impact our competition. It can impact, because once you start having that impact, it impacts the whole ecosystem and everyone starts doubting. We've taken the direction also of going to other providers that are able to give us delivery of equipment. Next, please. We purchased earlier, Antminer T17s, this is when we gave more disclosure, et cetera, of where we were able to get equipment.
We find a very favorable rate of everything we've been able to do, touch wood, has been below what the current market costs are. That is something that I've got to thank Toby for, that's done a phenomenal job in the relationships. It was also the co-founding director of this company, of HIVE, and has been very helpful in introductions. Now the new group that we have that GP1, which we'll talk about a little later, they've been very helpful in sourcing equipment for us for the Bitcoin mining production. Next. Subscribe to our HIVE on our YouTube. Please do if you're not. I hope you like the five reasons to consider Ethereum, and this also relates to HIVE. Quite often we're asked the differences between Bitcoin and Ethereum. These are very brief and short. They're only one minute to two minutes, informational for you.
Next, please. Now I'm going to turn it over to hardworking Darcy, our CFO, who's been plugging away till late at night and early this morning on the financials.
Great. Thanks, Frank. Welcome to everybody that's joined. We've got record numbers listening in. This is perfect. You can flip to the next one, please. Great. Yeah. As a management group, we're putting together sort of our goals for the year. As you've seen, if you've been watching us, we set out and said, "Okay, let's have a goal of getting 1,000 petahashes." There was so much tightness in the market, not much supply of equipment, and we thought it was going to be very difficult. If we'd gone the normal route, we think it would have been because as everyone has seen, there's been some major purchases made by some of our competition. Since then, we've been able to go to some of the smaller suppliers, not ordering large amounts, but ordering staggered. We're getting them monthly.
The latest one we've been able to announce earlier this week was the 10,500 in total to push us up over our 2,000 petahash. Right now, our future is to be at 2.4 by the end of calendar 2021. We're really excited about that. It does come down to what Frank had mentioned. We're hoping that we're going to be able to get stuff delivered on time. We think that being able to use numerous different suppliers is going to de-risk the delivery risks that we might have if we had put all of our eggs in one basket. Next, please. Just taking a look at Ethereum and as Frank had mentioned and everybody on the call understands, it's challenging, I think, for us to be compared to some of our competitors because they're all pure Bitcoin miners.
Our bread and butter since we started in 2017 has been Ethereum, and we're proud of that, to be able to have that diversification. Here, what you can see is we did have a reduction in the number of coins year-over-year that were mined down to 2,100. A lot of that had to do with the DAG file that we experienced. The DAG file has to do with the size of the chip that is in there. We had mostly 4 GB cards, GPU cards in our Sweden Knivsta facilities. We've gone through a major retrofit and gone out and purchased new 8 GB cards, but that has to do with some downtime. There's going to be some downtime there. We haven't been as efficient as we could have been if we'd had it up and running.
There was a little bit of a drawback, but the great thing is we've been able to get suppliers. We've been able to get this program going. We at first thought it was going to be finished by the end of January, because of the delays of COVID and everything else, we've now had to push it down a little bit farther. But we've got almost all of our cards on order, it's just working through those delivery problems that we've got, and we've got them well in hand and are getting deliveries weekly into our facilities in Sweden to put those better chips into place and to set us up for the future. Next, please. This is another thing that we're showing is the Ethereum difficulty rate is doubling. You see where it's done in the last year, moving from just over two PH up over five.
This is the function of the block finding time, because we've got so much energy and resources focused on this, we've been able to weather the storm, so to speak. One of the things that Frank and I are focused on since we both joined, I guess myself back in 2018, is trying to be the lowest cost provider so we can weather these kinds of storms. When the Ethereum comes up, we're not jumping back and forth, we're focusing on that, and it's really helped us drive forward. Next, please. Okay. It was an incredible quarter for us, even though we did have a little bit of a pullback on the number of coins. You can see that the income from digital currency mining year-over-year, CAD 13.7 million versus CAD 5 million in Q3 of fiscal 2020.
The big thing that we see is the gross mining profit margin at CAD 10.6 million in the quarter that was just finished versus CAD 3.8 million. That is a huge badge or pat on the back for our team in terms of taking control of our operations. When we moved from our former service provider, taking control of Sweden and Iceland and being able to drive down costs. We've now got that transparency. We've been able to find out where we can get the best efficiencies, and that drives down our operating costs, which goes directly to this gross mining profit margin that you see in front of us. Next, please. This is taking a look at the Ethereum mining increases quarter-over-quarter. We're comparing it to the December 31st quarter that just finished versus the September 30th.
You can see we're up on the income from digital currency mining, even though we had a little bit of a pullback, as you saw on the Ethereum production. Also our gross profit mining margin is continuing to increase. This is a great in terms of the way that we're driving towards. The Adjusted EBITDA, now this is one of these accounting things that you want to try to pull out a lot of those things that aren't really controllable, CAD 13.7 million for the quarter, which is compared to CAD 4.9 the prior, and CAD 17.2 in net income. We're continuing to have very successful quarters, and we see that continuing moving forward. Next, please. The Ethereum mining margins is something that has continued to drive our growth quarter-over-quarter. You can see the Adjusted EBITDA here at CAD 13.7 versus the CAD 10.6 in the prior quarter.
Net income is up also and the gross profit margin. We're continuing to see that graph, if you're looking at the bars, moving up. It's not a hockey stick, which is fine. Strong and steady is winning the race, and that's what we're continuing to do. Next, please. A lot of things, our income per share, it's continuing to go up. For the three months, we had a CAD 0.05 income per share. For the nine months it was CAD 0.08. We're continuing to have this positive quarter-over-quarter growth, which is very exciting. It's something that we're very proud of, and it's continuing to give us that support that we need, that we're going in the right direction and continuing to focus on costs.
When we're in these kind of bull markets, it'd be very easy to just spend money like we're crazy and drunken sailors, but this is the time that we have to continue to be resilient, look at cost reductions, because a crypto winter will take place and we got to make sure that we've got the stability to stand up to that. Next, please. Healthy balance sheet is something that we continue to have and we're very proud of. You can see the cash on hand was about CAD 1 million at the end of December. A lot of that had to do with the spending that we were doing coming into the end of the year on the upgrade of the GPU chips. We've got a large amount of accounts receivable and digital currencies at CAD 15 million at the end of the year.
As we talked about, we have had a CAD 15 million injection as part of a corporate debenture that was put in in early January. That came in, we've also had at the market program where we're able to sell shares with a broker's assistance, we've been raising money through that. We're continuing to build up our cash, continuing to not have to sell our coins. We're building up those inventories and continuing to have a very strong balance sheet moving forward. Next, please. Bitcoin mines, as you can see, if we go back a year, we weren't mining any Bitcoin ourselves. We had moved away from the cloud mining contracts that we had. They weren't very profitable for us. A lot of costs, not a lot of benefit.
We got our Quebec facility up and running in April of 2020, and you can see this great growth. The 153, when we start, had a lot of miners running. We did some upgrades, dropped down a little bit to 88, and 165 is where we've gone now, and we purchased some additional equipment in Q3, 1,240 machines that are being hosted right now in British Columbia. We're hoping to have those moved eventually into our own facilities. We see this growth moving forward and as I mentioned, being able to hold our coins in inventory is something that we think is very important as a miner, is to have some coin inventory there.
I'd just like to add, Darcy.
Yeah.
During 153 to 88 is when the halving took place. Unless you have the new machines, we got the new machines installed in the last quarter, and you can see our production expand back up to Bitcoin. That's a classic of showing 153 to 88, the impact of the halving.
Yeah. No, great point, Frank. It seems like that was decades ago, but it was only less than a year ago, so that's a great point, Frank. I had forgotten about that. That was the great thing and great timing in terms of us acquiring our first facility in Quebec. A lot of people thought that we were crazy doing it just before the halving but it's worked out extremely well, and we've got a great team there working with us. You can see here the Ethereum by quarter in terms of what's mined. What we've seen, and you guys can see, is we run about 20,000 Ethereum coins per month. When you see those large jumps like we had in September 2020, a lot of that just has to do with the DeFi and transaction fees.
It sort of seems like our norm is around 20, and anything above that, it has to do with what we call internally, those bonus payments that are there. We expect that the last quarter of fiscal 2021, that's our quarter that'll be ending March 31st, 2021, is going to be good also because we've seen a lot of those bonus payments coming through the Ethereum network. Next, please. Great. I guess we'll move on to the corporate update. Frank, are you going to run with this?
Sure. I'll hop on this, Darcy. We made a press in a previous press release just so the shareholders would know that our liquidity is phenomenal in how we've been able to have substantially less dilution than any of our peers. If you take a look at the number of shares outstanding for Marathon Digital Holdings from, I think, in the past year, from 10 million to 80 million. Riot Platforms from 25 million to 75 million. They've experienced, they've had the ability to raise hundreds of millions of capital to buy equipment, but it's been at the cost of having massive dilution. We have hardly had, on a relative basis, dilution. We've been very frugal, only recently did the ATM machine kick in, where we're able to raise capital without putting a half a warrant in the capital markets or putting a big cap on it.
It's been a great mechanism so that we are able to announce that we're mining and we're saving all our coins. We're not selling any coins at this stage. We're rebuilding all our reserves. Our whole strategy is to build as much as possible Bitcoin on our balance sheet, and Ethereum. Today, when you take a look at those assets, I think we announced the other day they're something like $ 30 million in cash on hand. I think the total number worked out to about $65 million in the most recent press release we put out, that number. From year-end, U.S. Global had committed to a $50 million investment so they could fast-track the acquisition of equipment at year-end. That didn't close just because of the ongoing processing regulatory.
We had committed the capital and set it aside for them to grow with. Now it's grown even more as we bought more equipment. We are owning coins, and that's very important in our strategy to always have coins on our balance sheet. Next, please. This is some of the older miners looking at Iceland, and it's much nicer looking to look at today of the facilities. That picture is of me two and a half years ago in Iceland mining Ethereum. The big part, as Darcy mentioned, it's been the incredible rush to upgrade from 4 GB to 8 GB memory cards. I think we're about 60%, more than 60% through that phase. Hopefully by the end of March, we'll be completed. That's our goal. There's been ongoing delays and disappointments in shipping around the world.
I know from our mutual funds, our global funds, their shipping costs, container costs have gone from CAD 10,000 to CAD 7,000. If you want to rent a container space for a month, it's up 12-fold. The delays of shipping globally by airplane or by boat or even by train is experiencing tremendous delays. This is something that's one of those risks, but we're on it every day. We huddle every morning to know where we are around the world in getting our equipment and as soon as it's landed, how fast we upload it. Next, please. This is just announcing the private placement of convertible debentures that we put in at year-end, and it would be an opportunity for HIVE to deploy capital into additional miners. Since then, the stock has doubled. Next, please.
HIVE is purchasing 100% of shares of GPU Atlantic, now the owner of a 50 MW center in Grand Falls, New Brunswick. It's less than CAD 0.05 cost. Purchase price is approximately CAD 25 million. We can go up to 60 MW, I believe, in that facility. We're also bringing in some great young guns that have a lot of experience, both technical from CTO to database management to network management to relationships and acquiring equipment. We're thrilled, and this is what HIVE needs to jettison to the next level of a global player in this space, is the brain trust, and they've come along with the GPU group that Saveli's been able to put together. We're thrilled about this opportunity. Next, please. These are the words for everyone just to get an idea. There is an exahash.
If you have 1,000 petahash, you have an exahash. An exahash is one quintillion. These are big mega numbers, and the next level is going to be, as you can see, a zettahash, an exahash, and then which is a sextillion. These are just a lot of numbers, and it just really is impressive where we are in a very short period of time. In the past two months, we've added our capacity by basically two exahash, because we had about 400 petahash, and now we're at 2.4 exahash. That's 2.4 quintillion. I like that big number, quintillion. Next, please. Now we're going to turn it over to Toby.
In addition to being a violinist, a tax lawyer, he's a serial entrepreneur, and he has been so critical for us in managing the relationships, even during COVID, going back and forth between Munich and Sweden and Stockholm and Boden. Toby just recently spoke in a webcast on ESG, and he's going to give you a really unique perspective because I would share with you that I believe we have the strongest ESG footprint of all the other miners.
Thank you so much, Frank. It's a pleasure to talk to you stakeholders and to give you a bit of an insight what we are doing. The great news and the great message is our frequency balancing system, where we worked hard the full last year, is now fully operational. What does that mean, frequency balancing system? You can even understand it as, let's say, electricity demand balancing system. We are working together with the electricity supplier in not only the community, it's in the whole region which is Vattenfall. The electricity supplier is balancing all the time, 24/7, the supply of electricity and the demand, of course. It might be that the forecasts of the electricity supplier, that it's going out of the normal range, and for that, they need to ramp up quickly electricity production.
The hydropower stations, the hydropower turbines, they have a lead time of something like 15 minutes to ramp up electricity production. Here, what we are doing is we are stepping in as a buffer because computers can switch down in one second. What we did, we installed a system and we worked together with Vattenfall and with some joint venture companies to have this technically running. We are getting signals, "Okay, please switch down some computers, switch down some electricity capacity to balance our electricity grids." We can do it within seconds, and we get then the vice versa signals at the latest 15 minutes later and can ramp up our computers again. For this ability, so that we are selling to the market our ability to be flexible.
For this, we are getting compensated, and I think the compensation in January, it was something like CAD 140,000, so it's quite a substantial amount. Even economically, it's very great for the whole company. We are doing what we are doing. We are doing something very great to the market because we are not only using green energy only. We are selling our flexibility back to the market. We are making, with a multiplier of 15 or so, a higher base supply of green energy possible because we are just a buffer of something like 5% in that market. We are making possible a higher base supply of green energy, green power in the whole region in the range that our facility has something like 20 MW. We're expanding it to 25 MW or even 28 MW, what we want to do.
We are making possible a higher base supply of something like 150 or 200 or more, or even 300 MWs in the market. We are believed with that what we are doing, we are really by far the most sustainable data center company in the world. Also on top of that, we are getting quite interesting fees for that. The downtimes we are taking into account for that flexibility is just a loss of production of some minutes, and that happens during the year maybe 15 times or 20 times. We have some hours over the year of downtime. It's hard to say, but something like CAD 1 million or even CAD 1.2 million for that.
That is very great what we are doing, and our next step is then also, as you see on this slide here, we are working together with the community of Boden, with the Boden Business Agency. We are working on a smart city project because our next step is we want to sell to the market also our excess heat. In this Arctic Circle, you can imagine the weather conditions during the year are quite cold, and with transport and selling our excess heat, we can even also support projects like greenhouses, so growing tomatoes and vegetables and so in that region. Don't get me wrong, we don't want to end the business of gardeners but we want to expand our footprint in sustainability and even getting compensated for that. In the end, what we are doing is a win-win-win for everybody.
It's a win for us, for you stakeholders. It's a win for the electricity company, for the community, and even the whole region, and also for the climate. That's great.
Thank you, Toby. Toby, you just gave a presentation to what, 1,000 institutional people with Vattenfall last week on ESG and our participation?
Yep.
There is a big interest. For shareholders listening to the call, you got to think of what Tobias' explaining to you, the red shack, the big shack you saw earlier in the visuals, that's actually Facebook's data center. The internet capacity and the infrastructure in Sweden is extraordinary relative to other countries in the world, in addition to hydroelectricity. That's another big part of being located there. Tobias' done a great job, of course, getting involved with helping kids get into and see all the hockey games that they can't afford it because it's a big sport. In addition to that, it's called that community giving back and being involved with continuous education because there's a big push by the community for education for gaming and the university program.
Boden used to be a military center, which is so interesting when you know the history of it. I'd like to just go forward and explain to people that we have basically 10,000 hair dryers. Think of that. You know how loud they are, one of them? 10,000 of them. Those 10,000 are using, say, 1,400 watts of electricity, which you're using for your hair dryer. If you don't keep them cool, it will basically shut off. We need coolants, we need cold air, we need fans, then we want to take those 10,000 fans that are those hair dryers that are blowing that heat out, that's going to go into a facility that would be able to grow carrots and tomatoes and cabbage, et cetera, rather than shipping from Spain or Italy, which would have a big carbon footprint.
It would basically make it neutral. Coming back on this, Toby has been so involved in this sort of the future of where we're going. Next, please.
Yeah. To give you a number of this, so what we are producing 58 cubic meters hot air per second. 58 cubic meters hot air means with a delta temperature of 30 degree centigrade. We can deploy to greenhouses on hectares.
The business Bodens Energi, and that whole business development team, they've been great partners in helping us. I want to make sure we thank all of our partners that have helped us during this period of taking control of our destiny, driving down our costs everywhere at the same time. Now we'll be able to expand. During this process of us expanding and controlling our costs, what you're seeing in the ecosystem is Bitcoin addresses, the balances are growing. If you go to some of these sites, such like Robinhood, they can give you fractals of a share. You can buy a fractal of Amazon or Berkshire Hathaway or Bitcoin. You don't have to go and write a check for one coin, one share, and spend CAD 50,000. You can get a fractal of it.
You're seeing that grow and that interest through the Robinhood and the other brokerage firms like Schwab allowing this sort of fractal investing. At the same time, you're seeing Bitcoin addresses growing. This is part of a very important rule called Metcalfe's Law. That is that if you have the supply, the daily supply, and you turn around and get more and more people opening up wallets, the price will project much, much higher. Metcalfe's Law is where people are using to forecast Bitcoin at $100,000, some are $400,000. What we want to make sure is that we're positioned to participate in that higher price action. Next, please. Lots of news. Everyone's aware that Tesla bought $1.5 billion worth of Bitcoin in early February.
Elon Musk has been a huge fan of cryptocurrencies and Tesla intends to start using Bitcoin as a form of payment. Big step forward in mainstream adoption. I think one of the key parts this past year was PayPal. If you have a PayPal account, you can buy Bitcoin. You can buy a fraction. The fact that you can do that is a game changer. Next, please. JP Morgan, remember, was always trash-talking the industry until February of 2019 when they launched their own stablecoin, which for us is really important because the backbone to the stablecoins by the banks use Ethereum. More banks coming up with stablecoins, more Ethereum demand picks up, along with DeFi, Decentralized Finance. Now you have proof of stake taking place, and something like CAD 5 billion of coins went into earning an income. That left the supply.
We're seeing a shrinking supply, and I thought it was well-covered by Christine Kim and Bill Foxley at CoinDesk, in December, that Ethereum mining will continue to be very, very profitable for the next three years, based on that. Having JP Morgan now allocating a 1% to Bitcoin as a hedge, as an alternative asset. Next, please. Google search is an important part of the sentiment, and sentiment quant funds that we noticed at HIVE for the past six months is trading by the hour with Ethereum and Bitcoin, particularly Ethereum price action. If Ethereum is up in the next hour, then all of a sudden our price starts rising. It falls, all of a sudden HIVE starts to decline. It's truly becoming a proxy, and a lot of the quant funds that use it, they use sentiment analysis.
This is showing you, and basically we know this well from the world of gold, that if more people just look up the price, then the probability next week of it being higher is much greater. It's regarding the interest of just looking at the price is a predictor of a short-term trend. As you can see here, there's been a huge surge, much greater than even 2019 when Bitcoin hit CAD 19,000, of the curiosity of what's going on in looking up the Bitcoin price. Next, this is Ether Triples because the CME futures has announced most of these hedge funds last year that announced they were buying Bitcoin. They actually didn't buy the coins themselves directly. They used the futures market, even though there's no leverage allowed for crypto at this stage.
They went in and they bought their position because of liquidity and easier for accounting. The announcement on February 8th of Ether coming out has basically seen a huge interest in the futures market by the Chicago Mercantile. This is extremely positive. I can call the wind hitting our sail for Ethereum. Next, please. This is another sort of double of crypto index puts stocks in the shade. You can see that there's more interest in trading these, both going long, short, hedging, and all that does is add to the ecosystem liquidity. You need minnows and you need whales. You have to have a complete ecosystem, and there's going to be sharks in there, and there's going to be tunas and groupers, etc.
I think what you're seeing is that the ecosystem for the crypto world has expanded substantially into the futures and securities market. Please. Questions. We have about 10 minutes, nine minutes left for questions. We'd like to wrap this up in an hour. I really want to point out the number one question, and I'm going to repeat it for those that came late on the call to this morning, is being listed in the U.S. It's a two-step process. We are in that process now of lawyers working on a registration statement. About 20 have to go to the SEC. The application then goes in exchange. It just will go through its normal process and it's in motion. That's what we're happy about. Next big question is, do we keep the coins? Yes, we do. We've always had an inventory of coins.
Now because of our cash position where we are, we are mining all those coins we can because we had to use a lot of coins in the last quarter of 2020 to upgrade our Ethereum production in Sweden and Iceland. Now we're in a very strong positive cash flow to be able to continue to grow and just build our inventory, replace all the coins we own in Ethereum and expand our footprint in owning Bitcoin.
Thanks, Frank. A few other questions that came in. This one says, "In what ways does HIVE benefit from DeFi? I understand that the Ethereum mined by HIVE will be used to process the DeFi transactions, but will HIVE be able to provide DeFi services in a way to directly profit off of the DeFi boom? For example, gas fees, blockchain-as-a-service fees, et cetera.''
No, we're not going to be directly into that. We are working on some strategic investments that I think are very exciting regarding DeFi and that we are going to sponsor DeFi companies and make investments in them going forward.
All right.
Darcy, do you have any comments on that?
No. I think that type of thing where we'd like to, I don't know if the right word is, but sort of be an incubator and help out other companies. We'll be focusing on our expertise right now, which is running the facilities at low cost so we can get high margins, but also realize that we got to be part of the ecosystem and we can't operate just in a vacuum. There are some great DeFi opportunities out there where we can make strategic investments and help our shareholders. Sort of like how HIVE is used as a proxy for Ethereum and Bitcoin as it moves. This will help the shareholders also if we have some strategic investments instead of them having to go out and invest in a whole bunch of companies.
If we can get this stuff going, invest in HIVE and you've got exposure outside of Bitcoin and Ethereum. You've got exposure to some other DeFi opportunities.
We have made one little investment. It would never move the dial at this stage. It's appreciated eightfold in that DeFi space. It was just the startup of a company and how fast it's tracked. I think in that video which I pointed out at the beginning, I highly recommend the five drivers for a higher Ethereum price. One of them is explained in that short video, DeFi and stablecoins are really critical for that. Next, please, Holly.
Another question says, "How do you see HIVE fitting into the proof of stake environment?''
Well, proof of stake is where you basically put up your coin, your inventory, and they give you an income. I think, it's my opinion, is that for the next three years, the demand for Ethereum from proof of stake from DeFi and from stable coins being launched is only to put upward pressure and will make more mining Ethereum than we would staking at this stage. We want to have, at that pivot point, a huge inventory so that when we stake, we'll have that recurring income.
Okay. Another one says, "Given the volatility of Bitcoin, along with more and more companies putting it on their balance sheets, where do you see HIVE in the next year?''
Growth. As you can see, when we made these announcements in the past couple of days, it shocked a lot of people how fast we basically cranked up our Bitcoin production profile and facility. We definitely want to be owning more facilities and we want to be increasing our Ethereum footprint, which we're working on now in Sweden, and planning for that, and Iceland, at the same time, our Bitcoin footprint.
''Is there any news on an expansion in Texas at all?''
There's no news at this stage to share with the public.
Okay. ''Do you see regulatory issues in the future, for example, with central banks, and if so, how is HIVE getting ahead of these issues?''
Well, the biggest part is that we mine coins that have no AML concern. I think that's the biggest part is that where our business model is. With the banks and with how they function and the regulatory regime by central bankers around the world, there's just so much noise. There really is a tremendous amount of noise. It's died down a lot compared to 2018, because every time there was a meeting with Congress or meeting with the Senate or meeting with the Federal Reserve or the SEC, the crypto space would, during that crypto winter, get knocked down. That's not taking place today. The head of the SEC was teaching at MIT, crypto and blockchain. I think that that's an important dynamic in the capital markets.
We do know that the SEC has pursued any pump and dumpers. In particular, there was those pump and dumping ICOs, Initial Coin Offerings, that really were egregious and the SEC was great at cleaning up the Wild West. I don't think they're going to become lax there, but the standards of care is much better for the overall eco world.
All right. With the last minute here, maybe Darcy and Frank can chime in. What is your vision for what the company will look like in three to five years?
Toby, what do you think? In three to five years.
Yeah. Of course. Yeah, we are the largest provider.
What do you think we'll be with that? Darcy, where do you think we'll be?
Yeah, no, I think that it's going to be transformational. I think that, especially on our GPU side is the Bitcoin, there's going to be new ASICs coming out and you can build out. I can see us continuing to look at what can be done on the GPU side in terms of AI, the larger data centers providing that back end to support other projects, whether it's video rendering or medical support, sort of that back end stuff. That's where I think there's going to be some exponential growth possibilities for HIVE because we've already got our foot in that GPU side. Not in just the one limited box of Bitcoin mining.
Thanks. Well, I'll answer the end, where I see in three to five years, HIVE to be a CAD 10 billion company. That's the vision that I have. That will take from a combination of putting data centers on our balance sheet and becoming a serious global data center provider, and unique incubating investing will help drive that. Most important is to be a leader in driving revenue from mining Ethereum and from mining Bitcoin. I think that will jettison us up to a much more serious player on a global scene of other data centers.
Perfect. All right. Well, this concludes our presentation for HIVE Blockchain Technologies results for the third quarter. Thank you, everyone.