Mining company Hut 8 reports $72 million loss

Hut 8 Corp. (HUT), one of the largest Bitcoin mining companies in North America, has announced its financial results for the second quarter ended June 30, 2024. According to the data, the company’s quarterly revenue reached $35.2 million, an increase of 72% compared to the same period in 2023.

However, even with this increase, the company reported a net loss of $71.9 million, due to the price adjustment of its BTC. However, despite the negative result, Hut 8 revealed plans to expand its operations in the coming months.

Revenue grows, profit falls

In its earnings report, Hut 8 reported that its revenue for the quarter ended June 30, 2024, increased to $35.2 million. On the other hand, the result for the same period in 2023 reached $20.5 million, which revealed strong growth.

The company justifies the result through the company’s continued expansion in its energy and Bitcoin mining operations. In total, the miner’s power capacity reached 1,075 megawatts (MW) across 18 locations, with 762 MW allocated to Bitcoin mining in North America.

The company owned approximately 49,400 miners, capable of producing 4.8 exahash per second (EH/s).

However, the company’s financial performance was impacted by a $71.8 million loss resulting from the fair value adjustment of its digital assets, driven by new rules from the Financial Accounting Standards Board. In addition, the price drop of BTC affected the company’s results.

EBITDA and mining

Finally, Hut 8’s adjusted EBITDA for the quarter came in at negative $57.5 million, a significant decline from the positive EBITDA of $14.8 million reported in Q2 2023.

During the quarter, the company mined 279 BTC, a drop of more than 50% from the 740 BTC mined in the same period last year. In contrast, Hut 8’s average cost per BTC more than doubled, rising from $14,907 in 2023 to the current $26,232.

Despite these challenges, CEO Asher Genoot emphasized the positive aspects of the company’s ongoing restructuring efforts. “Our results this quarter reflect the ambitious restructuring program we put in place six months ago,” Genoot said.

He also highlighted the company’s success in reducing energy costs, with the cost of energy per megawatt-hour falling to $31.71, compared to $37.34 a year earlier.

Hut 8 Expansion Initiatives

Hut 8 also revealed its expansion plans for the coming months. One of the company’s goals is to upgrade its mining machines and commercialize its vertical GPU-as-a-service in the third quarter of 2024.

“With our strengthened operational base and recent advancements in ASIC efficiencies, we believe now is the right time to upgrade our fleet,” said Asher Genoot.

The company also plans to build a new site in the Texas Panhandle with 205 MW of low-cost, long-term power that could support up to 16.5 EH/s of next-generation ASICs.

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