Hut 8 beats Q3 revenue expectations, increases revenue to $43.7m

Bitcoin mining company Hut 8 reported revenue that beat expectations in the third quarter, with revenue exceeding $43.7 million.

Miami-based crypto mining company Hut 8 announced third-quarter earnings results on Wednesday morning. The publicly traded miner, with a market capitalization of $2.2 billion, reported quarterly revenue of $43.7 million; That’s well above the $35.1 million expected by analysts surveyed by FactSet.

Revenue growth was driven primarily by strong results in the crypto mining and managed services segments. Crypto mining contributed $11.6 million, while managed services brought in $20.8 million. The growth highlights Hut 8’s diversification into high-performance computing and artificial intelligence infrastructure. The firm also reported a 33% drop in energy costs per MWh, falling to $28.83 from $42.73 a year ago.

Hut 8 mined 234 BTC (worth approximately $14.2 million) in the third quarter. As of September 30, there were 9,106 Bitcoins worth approximately $576.5 million and $72.9 million in cash in reserve.

Hut 8 CEO Asher Genoot highlighted several key initiatives, including a partnership with Bitmain, the launch of the GPU-as-a-Service vertical, and the conversion of a $37.9 million loan into equity. He also emphasized that the firm is focused on scaling its artificial intelligence and Bitcoin mining capabilities.

Hut 8 is on track to upgrade its self-mining fleet and expects to increase its hashrate by 66% to 9.3 EH/s by the first quarter of 2025, with potential growth to 24 EH/s by mid-2025. Following the earnings report, Hut 8 shares briefly rose 1.5% to $24 in premarket trading, according to Nasdaq data.