Bitcoin Miner Hut 8 Q3 Net Loss More Than Doubles as Production Slumps

The firm said it mined fewer coins due to a higher network difficulty, operational issues and the suspension of some operations.

AccessTimeIconNov 14, 2023 at 3:22 p.m. UTC
Updated Nov 14, 2023 at 4:25 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

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.

Edited by Sheldon Reback.


Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk offers all employees above a certain salary threshold, including journalists, stock options in the Bullish group as part of their compensation.

Jamie Crawley

Jamie Crawley is a CoinDesk news reporter based in London.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.


Read more about