Huobi's mining pool revenues jumped 547% year-over-year, reaching $320 million USD in 2019
SINGAPORE, March 19, 2020 /PRNewswire/ -- Huobi Group today announced financial results for its digital assets mining and trading pool, Huobi Pool, for the fiscal year ended December 31, 2019. The annual report marks the first time Huobi Pool has released financial data since its launch in 2018.
"2019 was a pivotal year for Huobi Pool, driven by strong revenue performance from our staking operations and the rapid growth of our cloud PoW mining service," said Ciara Sun, VP of Global Business at Huobi Group. "We've invested heavily in the Huobi Pool ecosystem and we're excited about the division's continued traction as we expand the service globally this year."
In 2019, Huobi Pool's operating revenue was $320 million (USD), up 547% from $53 million in 2018. Operating profit rose 218% from $2.5 million in 2018 to $6.3 million in 2019.
The two primary drivers of revenue for Huobi Pool in 2019 were PoS staking and PoW mining, contributing 35.62% and 23.54% of the total net income, respectively.
PoS staking continues to be Huobi Pool's most profitable business segment. In 2019, Huobi Pool grew its staking operations and participated in a larger number of PoS projects, up from 7 to 25. Additionally, Huobi Pool ranked in the top three nodes in more than half of the projects it participated in.
PoW mining became one of the fastest-growing business segments of 2019, with Huobi Pool's BTC hashrate reaching a peak of 6,578 Ph/s, ranking it within the top five mining pools by hashrate distribution. The growth in PoW mining operations can also be attributed to the successful launch of Huobi Pool's BTC cloud mining service, which was received with overwhelmingly positive market reception and demand.
In addition to strong growth across core business segments, Huobi Pool continued to prioritize ecosystem development with several new initiatives throughout 2019.
In May 2019, Huobi Pool launched Huobi Pool ECO, a digital asset exchange that supports emerging public blockchain projects with a wide variety of new consensus mechanisms. Two projects—BHT and BQCC—were listed on the exchange as part of Huobi Pool ECO's Boost program, which promotes the rapid development and implementation of high-quality projects by providing an efficient currency listing process, innovative trading mode, and in-depth project services.
Huobi Pool Token (HOT) has also started to gain traction as a central part of Huobi Pool's business model. HOT enables Huobi Pool users to receive daily token rewards, vote for representatives that can influence the network, and qualify for subscriptions to Boost projects on the ECO exchange.
Huobi Pool also launched a repurchase and burn program for HOT in April 2019, which resulted in six burns totaling 95.0074 million HOT, or 1.77% of the circulation. As of December 31, 2019, HP T's market capitalization exceeded $24.4 million with more than 265,000 users globally.
2020 Road map
Staking will continue to be a focus in 2020. Huobi Pool aims to add staking and mining services for 8 projects and node services for 12 projects, increasing asset precipitation by 20% year-over-year. Theorem's transition to PoS will also present an opportunity for Huobi Pool to take the lead in providing low-barrier staking services, contributing to a projected 20% year-over-year increase in staking revenue.
Throughout 2020, Huobi Pool will expand PoW mining of new and existing currencies, shift more pooling services on line, and expand the miner base. Huobi Pool will continue to develop and launch innovative new mining services and products to meet the needs of miners.
Huobi Pool will also explore new applications for HOT, including the possibility of allowing users to pay Huobi Pool ECO transaction fees with the token. Ahead of the HOT halving scheduled for August 31, 2020, Huobi Pool will increase the rights and interests of HOT users, include HOT positions in the calculation of Huobi EXP, and eligible HOT users will enjoy the rights and interests of Huobi VIP users.
To access the full annual report, visit this link.
About Huobi Group
Consisting of numerous upstream and downstream enterprises, Huobi Group is a leading global blockchain company. Established by Leon Li in 2013, the company's Huobi Global exchange accumulative turnover exceeds US $3 trillion. Huobi proudly provides safe, secure, and convenient cryptograms trading and asset management services to millions of users in 170+ countries.
For more information, visit www.huobi.com
About Huobi Pool
As a significant part of Huobi Group's ecological layout, Huobi Pool is mainly handling PoW mining, Staking mining and Huobi Pool ECO Exchange. With many public chain nodes and as the largest staking pool and leading PoW pool, Huobi Pool is devoted to providing one-stop financial services to all the digital users. Visit www.hpt.com
Contact: Betty Xi, +86-188-1065-4852
SOURCE Huobi Group