Hut 8 Loss Deepens Despite Higher Mining Rate

<p> Hut 8 Mining Corp. (<a href="https://www.financemagnates.com/tag/hut-8/" target="_blank">NASDAQ:HUT</a>), a digital asset mining company from North America, reported its quarterly numbers on Thursday. During the three-month period that ended on 30 September 2022, one of the largest mining firms achieved revenue of CAD 31.7 million and mined 982 bitcoins (BTC).</p><p class="MsoNormal">Althgouh Hut 8 was able to mine more digital assets than in the same period last year, the revenue decreased by CAD 18.6 million compared to CAD 50.3 million for Q3 2021. The company reported a net loss of CAD 23.78 million, declining from a neto profit of CAD 23.37 million a year ago.</p><p class="MsoNormal">Looking at results for the nine months closed on 30 September 2022, Hut 8 mined 2,870 BTC, which is 997 more than a year earlier. Although revenues for the period turned out to be higher, at CAD 128.85 million, the company has lost a net CAD 56.15 million year-to-date, compared to a CAD 38.47 million profit reported a year ago.</p><p class="MsoNormal">"Our conservative approach to managing our balance sheet continues to be paramount for us at Hut 8. Notably, we improved our mining capacity by 10% while reducing the average cost to mine each <a href="https://www.financemagnates.com/terms/b/bitcoin/" target="_blank" id="261088a9-0f41-4202-a73c-31f75ba6bd93_1" class="terms__main-term">Bitcoin</a> by 29%, when compared to the second quarter of 2022. We remain steadfastly committed to effectively managing capital in today's challenging environment and believe we are well positioned to deliver shareholder value in 2023 and beyond," Shane Downey, the CFO of Hut 8, said.</p><p class="MsoNormal">According to the company press release, the increase in the number of mined BTCs was achieved due to the higher than average hash rate. However, declining profitability of mining operations, rising energy prices and lowering bitcoin prices have left the company unprofitable in 2022. Profits from <a href="https://www.financemagnates.com/tag/mining/" target="_blank">mining </a>operations alone fell to CAD 9.3 million in Q3, compared to CAD 33.5 million reported a year earlier.</p><p class="MsoNormal">Cryptocurrency Miners in Trouble</p><p class="MsoNormal">Hut 8's stock is losing nearly 80% on Wall Street this year and is an excellent representation of the industry's current condition. Competing miners listed on the stock exchange, like Riot Blockchain Inc. (<a href="https://www.financemagnates.com/tag/riot-blockchain/" target="_blank">RIOT</a>), Canaan Inc. (<a href="https://www.financemagnates.com/tag/canaan/" target="_blank">CAN</a>) and HIVE Blockchain Technologies Ltd. (<a href="https://www.financemagnates.com/tag/hive-blockchain-technologies/" target="_blank">HIVE</a>), are falling in similar percentages.</p><p class="MsoNormal">On the one hand, their stocks guarantee indirect exposure to <a href="https://www.financemagnates.com/terms/c/cryptocurrencies/" target="_blank" id="b091101e-6e02-4b36-aa0e-7c972dfdd6ed_1" class="terms__secondary-term">cryptocurrencies</a> for many investors. So when bitcoin falls, their shares also slide. On the other hand, the fundamentally poor condition of the industry as a whole and low yields from mining digital assets make it very difficult to generate profits during the 'cryptocurrency winter'.</p><p class="MsoNormal">According to data from on-chain analytics firm, Glassnode, miners' revenue per Exahash stands at its lowest levels to date. This further shows how competitive the cryptocurrency mining industry has become in recent years.</p> This article was written by Damian Chmiel at www.financemagnates.com.

View Details

Argo Blockchain Sees 2,033% Jump in 2021 Net Income

Argo Blockchain (LON: ARB) has released its annual financials for 2021, reporting a 291 percent increase in revenue to £74.2 million ($100.

View Details

BitNile Mines 31.7 BTCs in March as Miner Count Doubles

BitNile Holdings, a diversified holding company, says it mined 31.7 bitcoins last month and has self-mined a total of 132.6 bitcoins (BTC), the world's largest cryptocurrency by market capitalization.

View Details

Hut 8 Posts Revenue of $173.8 Million in 2021

The Nasdaq-listed digital asset mining company, Hut 8 announced its financial numbers for 2021 today. The company published record revenue as the figure reached $173.

View Details

Digital Power Optimization Raises $2.5M in Funding Round Led by NYDIG

Digital Power Optimization Inc, a major energy services provider, announced on Wednesday that it has raised $2.5 million in a Series A funding round led by NYDIG bitcoin company.

View Details

Riot Blockchain Announces 458 Bitcoins Mined in January 2022

Riot Blockchain, a Bitcoin mining company based in the US, announced production and operations update for January 2022, as well as updates to the status of miner shipments and deployment and its in...

View Details

HIVE’s Bitcoin Equivalent Production in January Reaches 425 BTC

Today, HIVE Blockchain Technologies announced its production numbers related to Bitcoin and ETH mining operations for January 2022.

View Details

BitNile Releases January Report on Bitcoin Production and Mining Operations

BitNile Holdings, Inc, a Bitcoin mining firm based in Las Vegas, has published a report on its Bitcoin production and miner installation.

View Details

BitNile Releases January's Bitcoin Production and Mining Operations Report

BitNile Holdings, Inc, a Bitcoin mining firm based in Las Vegas, has published a report on its Bitcoin production and miner installation.

View Details

BitFuFu Announces Plans to Go Public in US via SPAC

On January 25, BitFuFu, a Bitmain-backed cloud mining company, announced plans to go public in the US through a merger with special-purpose acquisition vehicle, Arisz Acquisition Corp.

View Details

Vortex Brands Purchases Additional 8 S19j Pros Crypto Mining Machines

Vortex Brands Co, a Bitcoin mining firm in the US, announced the purchase of additional 19j Pro machines for its Bitcoin mining operations.

View Details

Core Scientific Debuts on the Nasdaq after It Completed SPAC Merger

On January 20, Core Scientific, a popular blockchain and Artificial Intelligence hosting, transaction processing, and application development company, announced that it has officially gone public.

View Details

European Regulator Calls for Effective Ban on Proof-of-Work Crypto Mining

Erik Thedéen, the Vice-Chairman of the European Securities and Markets Authority, has renewed fresh calls for a widespread ban on Bitcoin mining.

View Details

Intel Plans to Launch Bitcoin-Mining ‘Bonanza Mine’ Chip

Intel, a chip giant manufacturer, appears to be contemplating about entering into the Bitcoin mining hardware business. However, that might not be part of its upcoming GPUs.

View Details

Iran Closes Crypto Mining Operations to Prevent Winter Blackouts

Iran expects energy needs across the nation to increase during low temperatures in the coming months. Local energy authorities in the country have therefore decided to halt operations of authorized...

View Details

Creek Road Miners Buys 600 Bitcoin Mining Machines from Bitmain

On December 23, Creek Road Miners, Inc., a cryptocurrency mining company, announced that it has bought 600 Bitmain Antminer S19xp (140Th) machines as part of its efforts to expand its crypto mining...

View Details

Debunking 5 Myths to Help You Understand Bitcoin’s Mining Sustainability

Bitcoin mining consumes a massive amount of energy, but, the cheapest sources of energy remain sustainable sources.

View Details

HIVE Blockchain Produces More BTC in March 2022 despite Rising Mining Difficulty

HIVE Blockchain Technologies Ltd., a publicly-listed crypto mining company, has announced that it produced 282 Bitcoin in March 2023 from ASIC and GPU mining operations. The numbers if visibly higher from February's results, when HIVE mined 250 BTC.

HIVE Blockchain Mines More Bitcoins in March 2023

The increase in production took place despite the appreciation of the difficulty of mining cryptocurrencies. The Bitcoin network difficulty increased to 46.8 trillion during March, reaching an all-time high. Accordingly, Bitcoin mining difficulty ended the month about 9% higher than at the beginning of the month.

The company's current BTC balance is approximately 2,310, and it produced an average of 9.1 BTC per day last month. The company has received over 5,600 BuzzMiners in its data centers, all of which are functioning. In addition, HIVE ended the month with 3.36 EH/s of mining capacity, including ASIC and GPU BTC hash rate, and sold all of the Bitcoin earned from its GPU mining hash rate payouts.

Although the number of Bitcoins in the inventories has been falling for the second month in a row, HIVE is increasing its output possibilities. Accordingly, it sells cryptocurrencies to cover its ongoing business costs and further investments. In February, the crypto miner produced BTC at a monthly average of 2.75 EH/s compared to January's 2.38 EH/s average hash rate.

HIVE is ramping up mining at a time when rival Argo Blockchain, another publicly-listed digital asset miner, announced a drop in production last month. Argo Blockchain mined 161 Bitcoin or Bitcoin Equivalents in March, or 5.2 BTC per day, representing a 10% decrease from the 5.7 BTC per day produced in February 2023.

In the meantime, Marathon Digital Holdings, Inc., also operating in the mining industry, achieved a new milestone by mining 825 BTC, representing a 21% increase on a month-over-month basis. This was largely attributed to a significant increase in hash rate, which rose 64% in the previous quarter to 11.5 EH/s. As a result, the company set a new record by producing 2,195 BTC during the three-month period ending on 31 March.

HIVE Ends 2022 with Higher BTC Production

In 2022, HIVE was able to generate a greater amount of BTC with a year-on-year increase of 18%, resulting in a production of 4,752 BTC. Despite facing obstacles like a decline in profitability and the growing mining difficulty due to the prolonged cryptocurrency winter, the company saw this increase as modest.

However, during Q4 of the same year, HIVE experienced a loss of $90 million, representing an increase of 143% from the prior quarter's loss of $37 million. This was accompanied by a significant slump in revenue of 51.6% YoY to $14.1 million, which HIVE attributed to various factors, such as the Ethereum Merge, the prolonged cryptocurrency winter, rising mining difficulty, and falling crypto prices.

HIVE Blockchain Technologies went public in 2017 as the first cryptocurrency mining company publicly listed on the TSX Venture Exchange, which focused on sourcing green energy.

View Details

HIVE Blockchain Crypto Production Falls in June to 259 BTC

HIVE Blockchain Technologies Ltd., a publicly-listed company in the cryptocurrency mining industry, has unveiled its unaudited Bitcoin (BTC) production statistics for June 2023. The firm has mined 259 Bitcoin, elevating its current crypto balance to approximately 1,957 as of 1 July.

HIVE's Bitcoin mining capacity averaged over 3.3 Exahash (EH/s) in June, including ASIC and GPU hash rate.

HIVE Blockchain Mines 259 BTC in June

In June, HIVE produced 259 Bitcoin from both ASIC and GPU mining operations, averaging 76.6 Bitcoin per Exahash with an average hash rate of 3.38 EH/s. The company produced an average of 8.6 BTC per day, ending the month with 3.48 EH/s mining capacity.

The result is better than 2023's average but clearly lower than this year's record of 304,6 BTC, which was mined last month or the 280 BTC that was mined in March.

Aydin Kilic, the President & CEO of HIVE, acknowledged that the company's ASIC hash rate reached 3.4 EH/s in the first week of July. This is projected to grow as the majority of the previously announced 1.26 EH/s of ASICs have been dispatched and are currently being installed in data centers.

"We expect to provide updates on our growing hash rate capacity as we work towards our interim goal of 4 EH/s, and moreover, we are actively evaluating opportunities in the market for our year-end goal of 6 EH/s," Kilic added.

The company registered an increase of 4.6% month-over-month in BTC ASIC hash rate (from 3.17 EH/s in May) and an increase of 3% in BTC hash rate from ASICs and GPUs combined.

Network difficulty factors are critical variables in the company's gross profit margins. The Bitcoin network difficulty started at 51.23 trillion in June and peaked at 52.35 trillion, ending the month at 50.65 trillion, which is roughly 1% lower than the start of the month.

HIVE to Focus on AI

The Canadian publicly-listed crypto mining company has recently announced a strategic branding makeover, which includes renaming the company to HIVE Digital Technologies Ltd. This initiative aims to highlight the company's growing transition towards high-performance computing (HPC) data centers and to embrace the emerging trend of widespread Artificial Intelligence (AI) adoption.

The rebranding indicates a strategic expansion aiming to leverage the potential of HIVE's green energy data centers and GPU Cloud computing technology. These elements are critical in AI, machine learning, and sophisticated data analysis.

On our about July 12, we'll be changing our name to #HIVE Digital Technologies.This rebranding signals a significant strategic expansion to harness the potential of our green energy data centres and of GPU Cloud compute technology, a vital tool in the world of #AI, machine…

One of the factors motivating the company's decision to revamp its current strategy is the data from the most recent annual report. The numbers for fiscal year 2023 showed a decrease of 50% in the miner's revenue from the record $211 million that was reported in the preceding year.

The dip in revenue to $106.3 million was mainly due to the devaluation of Bitcoin and the escalating difficulty in mining top-tier cryptocurrencies. Despite Bitcoin's price showing signs of recovery in recent months, it experienced a fall of nearly 60% from March 2022 to March 2023. In the meantime, BTC reached multi-year lows, trading at around $15,500.

View Details