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Finance

Crypto Miner Hut 8 Reports Surprise Q4 Loss

The company's revenue was in line with expectations, but Ebitda missed estimates.

By Aoyon Ashraf, Eliza Gkritsi
AccessTimeIconMar 17, 2022 at 11:55 a.m. UTC
Updated May 11, 2023 at 7:16 p.m. UTC
Hut 8 plant
Hut 8 plant

Canadian cryptocurrency miner Hut 8 Mining (HUT) reported a surprise fourth-quarter adjusted loss of C$0.67 ($0.53) per share on Thursday.

  • The average analyst estimate pointed to earnings of C$0.17 ($0.13), according to FactSet data.
  • The miner said that the loss was primarily due to noncash revaluation loss on liability warrants of $114.2 million, which was partially offset by increased revenue.
  • Revenue more than quadrupled to C$57.9 million ($45.8 million) from a year earlier and was in line with analysts' average estimate.
  • As of Dec. 31, the company had a balance of 5,518 bitcoins with a market value of $323.9 million, which includes 2,000 bitcoins loaned as part of its fiat yield strategy.
  • The fourth-quarter adjusted earnings before interest, taxes, depreciation and amortization (Ebitda) was C$35.3 million ($27.9 million), which missed analysts' estimate of C$37.1 million ($29.3 million) and was up from C$30.7 million ($24.3 million) in the third quarter.
  • Hut 8's hashrate increased to 2.5 exahash/second (EH/s) by Feb. 28 from about 2.0 EH/s on Dec. 31. Its hashrate capacity will be about 3.55 EH/s once all of the mining machines the company has ordered are received and deployed.
  • Its shares initially fell 3.5% in the pre-market trading, but recently was trading up about 3%. Bitcoin was flat.
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    • Read more: Canadian Miner Hut 8 Closed 2021 With 5,518 Bitcoin in Reserve

    UPDATE (March 17, 16:18 UTC): Updated with latest price information.

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    Aoyon Ashraf
    Aoyon Ashraf

    Aoyon Ashraf is managing editor with more than a decade of experience in covering equity markets

    Follow @Aoyon_A on Twitter
    Eliza Gkritsi
    Eliza Gkritsi

    Eliza Gkritsi is a CoinDesk contributor focused on the intersection of crypto and AI.

    Follow @egreechee on Twitter