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North American Bitcoin miner and energy infrastructure operator Hut 8 Corp. disclosed its financial results on Tuesday for the three and six months concluding June 30, 2024.
Today we revealed our financial results for the three and six months ended June 30, 2024, which demonstrate the ambitious restructuring initiative we initiated six months ago. In spite of the halving’s effects, our revenue surged 72% year-over-year to $35.2 million in the quarter,… pic.twitter.com/cutv0u1zPC
— Hut 8 (@Hut8Corp) August 13, 2024
The firm reported a 72% rise in revenue year-over-year, reaching $35.2 million in its most recent quarterly earnings report. This increase was driven by a 21% decrease in the cost per kilowatt-hour for Bitcoin mining and an expansion in the company’s computing power sectors.
How Hut 8’s Energy Capacity and Hash Rate Are Driving Revenue Despite Losses
Hut 8’s energy capacity currently totals 1,075 megawatts (MW), encompassing Bitcoin mining, natural gas power generation, and cloud data centers. This growth has bolstered revenue, even as obstacles such as network halving and a decline in Bitcoin prices affected profitability.
CEO Asher Genoot noted enhanced performance despite the network halving, with the Digital Assets Mining segment’s gross margins increasing to 46% from 34% year-over-year.
The activation of the Salt Creek facility led to a 21% reduction in energy costs per kilowatt-hour, decreasing from $0.040 in Q1 2024 to $0.032 in Q2 2024. The company now possesses approximately 49,400 miners, achieving a total hash rate of 4.8 exahash per second (EH/s).
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In spite of these favorable financial outcomes, Hut 8 reported a net loss of $71.9 million, mainly due to a $71.8 million fair value adjustment on its assets, influenced by new Financial Accounting Standards Board regulations and a drop in Bitcoin prices. This contrasts with a net loss of $1.7 million during the same period last year.
Hut 8 Sees Drop in Bitcoin Holdings, but Alternative Revenue Grows
Hut 8 mined approximately 279 bitcoins in the previous quarter, raising its total holdings to 9,102 self-mined coins, valued at roughly $571 million as of July 31. However, this marks a decline from the 740 bitcoins mined in the same quarter last year, with the cost of mining Bitcoin nearly doubling year-over-year to $26,232 per coin.
The company’s revenue is primarily derived from alternative computing sectors, including high-performance computing and managed services, which generated $21.3 million, compared to $13.9 million from Bitcoin mining.
We are incredibly excited to announce a $150 million strategic investment from @coatuemgmt to partner in building a next generation AI infrastructure platform. This investment will accelerate growth in our data center portfolio and provides access to Coatue’s extensive network of… pic.twitter.com/BYvpHx50PS
— Hut 8 (@Hut8Corp) June 24, 2024
Hut 8 is concentrating on expanding its power footprint and improving its energy infrastructure, with a new 205 MW site in the Texas Panhandle and a $150 million collaboration with Coatue.
On June 24, Coatue Management announced a $150 million investment in Hut 8 via a convertible note, offering an 8% annual return with a five-year term and potential one-year extensions. The transaction was finalized on July 11 and filed with the SEC on June 21.
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