tl;dr
Hut 8 Corp. (HUT), a leading North American Bitcoin miner, reported a net loss of $71.9 million for the second quarter of 2024 despite a 72% year-over-year revenue increase to $35.2 million. The growth was attributed to the company's expanded energy and Bitcoin mining operations. However, the financ...
Hut 8 Corp. (HUT), a leading North American Bitcoin miner, reported a net loss of $71.9 million for the second quarter of 2024 despite a 72% year-over-year revenue increase to $35.2 million. The growth was attributed to the company's expanded energy and Bitcoin mining operations. However, the financial performance was affected by a $71.8 million loss due to the fair value adjustment of digital assets and a decline in Bitcoin prices. The company's adjusted EBITDA for the quarter was negative $57.5 million, and they mined 279 Bitcoin, down from 740 in the same period last year.
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.
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. 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.
SPECIAL OFFER (Sponsored)
Binance Free $600 (CryptoPotato Exclusive): Use this link to register a new account and receive $600 exclusive welcome offer on Binance (full details).
LIMITED OFFER 2024 at BYDFi Exchange: Up to $2,888 welcome reward, use this link to register and open a 100 USDT-M position for free!
More about Hut 8 Corp. Common Stock
Stock Analysis: Hut 8 Corp. Common Stock Stock Analysis: Hut 8 Corp. Common Stock
Sector: FINANCE
Industry: FINANCE SERVICES
Market Cap: 1051052000
Dividend Yield: None
P/E Ratio: None
EPS: -0.78
Revenue: 2.303B
Net Income: 1.022B
Volume: 171989000
50-Day Moving Avg: 20.21
200-Day Moving Avg: 5.56
RSI: 0.715