Now this is one stock that is reaping the benefits of the new green cryptocurrency. Hard-disk drive makers like Western Digital have seen growing demand for their hard drives and disks ever since chia—which uses spare storage space on hard drives to verify blockchain transactions instead of using the energy-intensive “proof of work” model employed by the likes of Bitcoin—launched in the crypto world.
Western Digital increased sales of its hard drives by over $539 million last quarter as its total HDD capacity increased by roughly 34% quarter-over-quarter (QoQ). WD made revenue of US$4.9 billion in its fourth fiscal quarter, up 15% year over year. Western Digital’s results were driven by the success of its 18TB HDDs among operators of cloud datacenters and enterprises. Furthermore, Chia crypto farmers also played a noticeable role in sales of high-capacity hard drives, though the company says those $200 million in HDD sales destined to Chia miners during the quarter didn’t play a pivotal role.
During an earnings call with investors and financial analysts, David Goeckeler, CEO of Western Digital, said “We saw incremental demand due to the emergence of Chia, our standout performance this quarter was primarily attributable to increasing demand from our cloud customers and the beginning of a recovery in enterprise demand,” said … There was also increased demand for hard drives due to proof-of-space crypto currencies such as Chia … We believe proof-of-space crypto currency presents a great opportunity for us in the industry, but we are closely monitoring the sustainability of demand.”