Hut 8 Corp., a prominent Bitcoin mining company in North America, recently disclosed its financial results for the second quarter ending June 30, 2024. Despite recording a significant year-over-year revenue increase of 72% to $35.2 million, the company reported a net loss of $71.9 million. This loss was primarily attributed to a $71.8 million loss resulting from the fair value adjustment of its digital assets, influenced by new Financial Accounting Standards Board regulations and a decline in Bitcoin prices. Additionally, the adjusted EBITDA for the quarter stood at negative $57.5 million, which represented a substantial decrease from the $14.8 million positive EBITDA reported in the same period the previous year.
Hut 8 revealed that it managed a total energy capacity of 1,075 megawatts across 18 sites, with 762 megawatts allocated for Bitcoin mining activities in North America. The company owned around 49,400 miners capable of generating 4.8 exahash per second. Nonetheless, during the quarter, Hut 8 mined only 279 Bitcoins, a significant drop from the 740 mined in the corresponding period the prior year. The weighted average cost to mine a Bitcoin surged to $26,232 compared to $14,907 in Q2 2023.
Despite the challenges faced, Hut 8’s CEO, Asher Genoot, highlighted the positive aspects of the company’s restructuring efforts. Genoot commented on the success in reducing energy costs, with the energy cost per megawatt-hour decreasing to $31.71 from $37.34 a year earlier. He emphasized the ambitious restructuring program initiated six months ago, stating that the results of the quarter were a reflection of this program. Looking ahead, Hut 8 is gearing up to upgrade its mining fleet and commercialize its GPU-as-a-service vertical in the third quarter of 2024.
Expansion Plans
In addition to the operational improvements, Hut 8 announced plans to construct a new site in the Texas Panhandle with 205 megawatts of low-cost, long-term power to support up to 16.5 exahash per second of next-generation ASICs. The company aspires to enhance its power footprint as a key component of its strategy moving forward. Moreover, Hut 8’s strategic partnership worth $150 million with Coatue is expected to expedite the commercialization of its energy infrastructure platform, positioning the company to benefit from large-scale infrastructure development opportunities.
While Hut 8 Corp. faced challenges in the second quarter of 2024 due to financial losses and decreased Bitcoin mining output, the company’s focus on operational efficiency and strategic partnerships demonstrates a commitment to long-term sustainability and growth in the cryptocurrency mining sector.