Hut 8's Q2 Loss Widens to $69M, Continues to 'Hodl' Bitcoin

The lower price of bitcoin and higher power costs hurt the results.

AccessTimeIconAug 11, 2022 at 11:29 a.m. UTC
Updated May 11, 2023 at 5:35 p.m. UTC
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Canadian bitcoin (BTC) miner Hut 8 (HUT) posted a C$88.1 million ($69 million) loss for the second quarter, compared with a loss of C$4 million in the same quarter a year ago and a profit of C$55.7 million in the first quarter.

Th loss in the latest quarter was driven by the revaluation of its digital assets, but was "partially offset by higher revenue and the non-cash revaluation gain on warrants liability," Hut 8 said in its earnings statement on Thursday.

Hut 8 withdrew its revenue estimate for next year that it had made in its first-quarter earnings report, as it reorganizes "certain low-margin product and service offerings" related to its high-performance computing (HPC) business.

In January, Hut 8 acquired five HPC data centers for C$30.2 million. Revenue from its HPC business rose 43% to C$4.7 million in the second quarter from the first quarter.

Hut 8's mining profit, however, fell by more than half to C$14.9 million from the first quarter because of higher power costs and the decline in the price of bitcoin, the company said. The miner's cost of mining each bitcoin rose 44% to C$25,900, which was about the same as it was in the second quarter of last year.

Hut 8's total revenue fell 22% to C$43.8 million from the first quarter, but that was up by about 33% from a year ago.

The miner mined 946 bitcoins in the quarter, almost unchanged from the 942 it mined in the first quarter.

Hut 8's bitcoin holdings rose 14.6% to 7,406 in the quarter, keeping up with its pace of growth in the previous three months.

The miner continued to hold on to its mined bitcoin, contrary to other mines that have started to sell in order to pay for operating expenses and meet obligations.

Hut 8's Nasdaq-listed shares were up about 5% at $2.87 during premarket trading. Other miners' stocks also rose, along with the price of bitcoin.

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Eliza Gkritsi

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


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