Bitcoin mining firm Hut 8 said its third-quarter net loss more than doubled and revenue fell 46% from a year earlier as it mined fewer coins due to a higher network difficulty, operational issues and the suspension of some operations.
The Toronto-based company's loss widened to C$53.6 million ($39 million) from C$23.8 million, while sales slumped to C$17 million from $31.7 million in the year-earlier period, according to a statement on its website. The number of bitcoin mined in the quarter tumbled to 330 from 982.
While some miners have posted better returns in 2023 as the BTC price has rallied this year, Hut 8 attributed the decline in part to issues encountered at its site in Drumheller, Alberta, where "high energy input levels ... have been causing miners to fail." Operations at the site are currently at only 27% the installed hash rate, Hut 8 said in its earnings statement.
Hut 8 added that the Bitcoin network's mining difficulty, the suspension of operations at its North Bay, Ontario facility after a dispute with its energy provider and the Ethereum network's migration away from a proof-of-work to a proof-of-stake mechanism were also factors in the decrease in output.
HUT Nasdaq-traded shares slid 8.4% to $1.86 at the time of writing.
UPDATE (Nov. 14, 16:20 UTC): Adds reasons offered by Hut 8 for decrease in mining output in penultimate paragraph.
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