Huobi increased revenues from cryptocurrency mining by 547% for 2019
Most of us know Huobi primarily as one of the world’s largest cryptocurrency exchanges. But that’s not all, because Huobi offers much more. And successfully! With their Huobi Pool, which is engaged in mining, announced a massive increase in operating revenues.
In specific figures, this is an increase of 547%, which can certainly consider their expansion successful. In 2018, these revenues amounted to only approximately $53,000,000, compared to a beautiful $320,000,000 last year.
However, these are not only revenues, although the difference was more pronounced. Huobi’s increase of the profit figures by 218% is really fascinating. Since the establishment of the Huobi Pool in 2018, the annual profit of $2,500,000 in 2019 has turned out to be an enormous $6,300,000.
Proof of Work or Proof of Stake?
Both! Huobi Pool focuses on the extraction (embossing) of both types of cryptocurrencies. But who is doing more? At the moment, Huobi is undoubtedly doing more on Proof of Stake, where the extraction of these cryptocurrencies represents 35.62% of their net profit. Moreover, they do not plan to change this, as they expect the profitability of staking or increased popularity of PoS cryptocurrencies and want to focus on this type of cryptocurrency.
A significant part of their profits, of course, is the classic Proof of Work. Here, unlike staking, as you know, it is mining on physical mining equipment. Therefore, we can benefit Bitcoin, for example. Despite the approaching halving and the desire of some cryptocurrencies, such as Ethereum to switch to PoS, we still see Proof of Work maintaining profitability.
In addition to the expansion and purchase of mining equipment in recent years by large mining companies, this confirms that Huobi Pool’s profits were 23.5% made up of Proof of Work cryptocurrency mining.
Huobi Pool Token
In his latest report, which is based on these particular numbers, Huobi Pool recalled his token with the abbreviation HPT. One of the main parts of the entire business model of the company. Designed specifically for the needs of the Huobi Pool, it acts as a reward mechanism for delivering hash rate or participating in the development of the entire platform.
If you would like to know more about this particular cryptocurrency exchange, check right here.