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

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

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

Hut 8’s Q2 Financial Results

In an August 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 in the same period last year. This growth was fueled 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 allocated to Bitcoin mining in North America. The company owned approximately 49,400 miners, capable of producing 4.8 exahash per second (EH/s).

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

Additionally, Hut 8’s adjusted EBITDA for the quarter was negative $57.5 million, a significant decline from the $14.8 million positive EBITDA reported in Q2 2023.

During the quarter, the company mined 279 Bitcoin, down from 740 in the same period last year. The weighted average cost to mine a BTC rose to $26,232, compared to $14,907 in Q2 2023.

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

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

Hut 8’s Expansion Initiatives

Looking forward, 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 operating foundation and recent advancements in ASIC efficiencies, we believe that 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.

“Scaling our power 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.