Hut 8 Reports $71.9M Loss in Q2 Despite 72% Rise in Bitcoin Mining Revenue

Hut 8 Corp. (HUT), a major US Bitcoin miner, announced its financial results for the second quarter ending June 30, 2024.

The company posted a net loss of $71.9 million despite a 72% year-over-year increase in revenue to $35.2 million.

Hut 8’s second quarter financial results

In an Aug. 13 press release, Hut 8 reported that its revenue for the quarter ending June 30, 2024 rose to $35.2 million, up from $20.5 million from the same period last year. This growth was driven by the company’s continued expansion in its energy and Bitcoin mining operations.

Hut 8 reported managing a total energy capacity of 1,075 megawatts (MW) across 18 sites, with 762 MW dedicated to Bitcoin mining in North America. The company owned approximately 49,400 miners, capable of producing 4.8 exahashes per second (EH/s).

However, the company’s financial performance was hit by a $71.8 million loss from the fair value adjustment of its digital assets, driven by new Accounting Standards Board rules Financial and a decline in Bitcoin prices.

Additionally, Hut 8’s adjusted EBITDA for the quarter was negative $57.5 million, a significant decrease from the positive EBITDA of $14.8 million reported in the second quarter of 2023.

During the quarter, the company mined 279 Bitcoin, down from 740 in the same period last year. The weighted average cost to mine one BTC increased to $26,232, compared to $14,907 in the second quarter of 2023.

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

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

Hut 8 expansion initiatives

Looking ahead, Hut 8 is preparing to upgrade its mining fleet and commercialize its GPU-as-a-service vertical in the third quarter of 2024.

“With our strengthened operational base and recent advances in ASIC efficiency, 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.

“Expanding our energy footprint remains central to our strategy.”

In addition, Hut 8’s $150 million partnership with Coatue is expected to accelerate the commercialization of its energy infrastructure platform, positioning the company to capitalize on large-scale infrastructure development.

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