Hut 8 Corp. (HUT), one of North America’s leading Bitcoin miners, 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 increase in revenue to $35.2 million.
Hut 8 Second Quarter Financial Results
In an August 13 press release, Hut 8 reported that its revenue for the quarter ending June 30, 2024, pink to $35.2 million, up from $20.5 million in the same period last year. This growth was driven by the company’s continued expansion of its energy and Bitcoin mining operations.
Hut 8 reported that it manages a total power 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 hit 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 decrease from the positive EBITDA of $14.8 million reported in the second quarter of 2023.
During the quarter, the company mined 279 bitcoins, up from 740 in the same period last year. The weighted average cost of mining one BTC increased to $26,232, up from $14,907 in Q2 2023.
Despite these challenges, CEO Asher Genoot, emphasized The positive aspects of the company’s ongoing restructuring efforts. “Our results this quarter reflect the ambitious restructuring program we launched six months ago,” Genoot said.
He also highlighted the company’s success in reducing energy costs, with the energy cost per megawatt-hour falling to $31.71, compared to $37.34 a year earlier.
Hut 8 expansion initiatives
Looking ahead, Hut 8 is preparing to upgrade its mining fleet and commercialize its GPU-as-a-service vertical in Q3 2024.
“With our strengthened operational base and recent advances in ASIC efficiencies, we believe 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.
“Increasing our energy footprint remains a central aspect of our strategy.”
Additionally, 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.
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