Hut 8 receives $150 million boost for AI data center expansion

Bitcoin miner Hut 8 revealed that it would receive a $150 million convertible note investment from Coatue Management, a technology-focused investment management firm. Data center expansion Hut 8 said the funds would accelerate the growth of its data center portfolio. Data centers are custom facilities housing large-scale crypto-mining operations. These facilities require energy-intensive infrastructures also […]

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Bitcoin miner Hut 8 lands $150M investment amid AI boom

Coatue Management invested $150 million in the Bitcoin miner Hut 8 Corp due to its capability to power generative AI applications with its high-performance computing.

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Bitcoin Miner Hut 8 Gains Momentum: Shares Surge as Coverage Begins

Hut 8, the result of a merger with US Bitcoin Corporation last November, has garnered attention due to its diversified businessmodel, according to a research report by Benchmark released today (Monday).

A Close Look at Revenue Streams and Crypto Reserves

Benchmark analysts highlighted the company's various revenuestreams, including self-mining, managed services, hosting, and involvement inhigh-performance computing and artificial intelligence sectors. Initiating coverage on Hut 8, Benchmark issued a buy ratingwith a $12 price target. At the time of publication, Hut 8's shares weretrading 5.2% higher at $8.47.

The report also noted Hut 8's bitcoin holdings,ranking second among listed miners as of March 31, with 9,102 bitcoins held inreserve. This substantial bitcoin reserve not only provides the company with asubstantial liquidity cushion but also positions it to benefit from pricerallies in the cryptocurrency market.

Broker Benchmark initiated coverage of $BTC miner @Hut8Corp with a buy rating and a $12 price target. It said the company was more diversified following its merger with US Bitcoin Corporation. @willcanny99 reports.https://t.co/fsRstb2FXP

Hut trades at a discount to its bitcoin mining peers thatwe expect to shrink as the company executes on its self-mining expansionplans, analyst Mark Palmer wrote. Management has focused on actions aimed atreducing the companys cost of mining bitcoin and its realized cost of energyand increasing its cash flow.

Hut 8's crypto holdings are valued at approximately $592million, which accounts for about 82% of its market capitalization.

Shutting Down Alberta Facility for Cost Savings

Hut8 recently closed its Bitcoin mining facility in Alberta, Canada, as partof its efforts to optimize operations and improve financial performance, asreported by Finance Magnates.The company has planned to relocate efficient miners to its Medicine Hat sitewhile retiring old and inefficient ones. This move is expected to increase thecompany's cash flow, reduce mining costs, and boost Bitcoin production byapproximately 11% per EH.

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Hut 8 Shuts Canadian Bitcoin Mining Site to Strengthen Efficiency and Financials

Hut 8 (Nasdaq | TSX: HUT), a prominent cryptocurrency mining corporation, has shuttered its Bitcoin mining site in Alberta, Canada. Announced yesterday (Wednesday), the decision aligned with the companys ongoing restructuring and optimization initiatives designed to strengthen financial performance.

Following a comprehensive analysis, we have determined that the profitability of Drumheller has been impacted significantly by various factors, including elevated energy costs and underlying voltage issues, Asher Genoot, the CEO of Hut 8, said.

Relocation of Efficient Miners

The company detailed that it will relocate the efficient cryptocurrency miners to the Medicine Hat site in Alberta, Canada, while retiring the old and inefficient miners from operations.

According to Hut 8, the capacity of the efficient miners from the closed site is about 130 PH/s of hash rate, while the capacity of inefficient miners is 38 J/TH. With the relocation, the company expects to enhance its cash flow and reduce its cost of mining Bitcoin. The company estimated the relocation would increase the Bitcoin mined per EH by about 11 percent.

Strengthening the Financials of the Company

The restructuring of operations came when Hut 8 was struggling with its financials. In the third quarter of 2023, the companys revenue declined 46 percent, which was CA$ 17.0 million, including CAD 4.5 million from its high-performance computing business. Its net loss also doubled after dropping to $9.9 million.

Our restructuring plan aims to drive maximum value from our assets and position the company for profitable growth. With the nominal lease expense, we will also have a low-cost option to re-energize the site if energy rates in the AESO grid decrease or hash price increases.

Despite the site's closure with immediate effect, Hut 8 will maintain its lease of the site and retain the option to restart operations if market conditions improve.

Meanwhile, Hut 8 recently changed its leadership with the appointment of Asher Genoot, who succeeded Jaime Leverton as the Chief Executive Officer.

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Hut 8's Top Investors Given Chance to Spearhead Class Action Lawsuit

Hut 8's investors who incurred significant losses due to alleged securities fraud have the opportunity to lead a class action lawsuit against the firm. The period in question spans from November 9, 2023, toJanuary 18, 2024, during which Hut 8 Corp. is accused of withholding crucialinformation from investors.

Investors' Claims

According to the complaint, Hut 8 failed to disclosevital information to its investors. Thecompany allegedly concealed the fact that one of its largest shareholders is anundisclosed related party.

Furthermore, there are claims that Hut 8 Corp.'s coreasset has a history of failing to provide energy and high-speed internet aspromised. Additionally, the profitability of certain assets is purported tohave been overstated by the company.

Inpart, the statement shared by Glancy Prongay & Murray LLP read: "Throughout the Class Period, Defendants failed to disclose toinvestors: (1) that one of USBTC's largest shareholders is an undisclosedrelated party; (2) that USBTC's core asset has historically failed to provideenergy and high-speed internet."

"(3) that the profitability of certain USBTCassets was overstated; and (4) that, as a result of the foregoing, Defendants'positive statements about the Company's business, operations, and prospectswere materially misleading and/or lacked a reasonable basis." Finance Magnates contacted Hut 8 for comments and will update this story once we receive feedback from the company.

HUT Investors Have Opportunity to Lead Hut 8 Corp. Securities Fraud Lawsuit https://t.co/N4IFt6N1Q6

Hut 8's Strategic Restructuring

Last month, HUT 8 announced a significant transition in its leadership following a merger between Hut 8 Corp. and US Bitcoin Corp. AsherGenoot, previously the President and a Board member, assumed the role of ChiefExecutive Officer, succeeding Jaime Leverton.

Genoot has a wealth of experience from his previous role asthe President of US Bitcoin Corp, a venture-backed private Bitcoin miningcompany. His track record includes overseeing a 730 MWportfolio across data centers in Texas, Nebraska, and New York.

Headquartered in Miami, Florida, Hut 8 Corp. focuses on Bitcoin mining, managedservices, energy arbitrage, and traditional data center operations. Thecompany's diverse portfolio includes computing data centers in British Columbiaand Ontario and Bitcoin mining and hosting sites across Alberta, New York,Nebraska, and Texas.

Last year, the firm faced a substantial decrease in revenue due to operational challenges such as increased network difficulties andelectrical issues.

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Bitcoin Miner Hut 8 Secures $50M Credit Facility from Coinbase

The Canadian Bitcoin mining firm, Hut 8, has secured a $50 million credit facility from Coinbase Credit, a subsidiary of the US-based cryptocurrency exchange, Coinbase. The facility will be used for general corporate purposes and will be backed by bitcoins held with the exchange.

Hut 8 announced the development today (Monday), noting that the agreement involves its subsidiary, Hut 8 Holdings, as the borrower.

Hut 8’s New Credit Facility

According to the statement, the facility comprises a $15 million term loan expected to be funded at or after closing. Moreover, the credit facility provides an option to get an additional $20 million in delayed draw term loan tranche in a second borrowing between one and two months after the closing.

Furthermore, Hut 8 has the option of accessing an additional $15 million delayed draw term loan tranche in a third borrowing within 15 business days after the completion of the previously announced merger between Hut 8 and US Data Mining Group, also known as US Bitcoin.

Hut 8 and US Bitcoin merged in February in a deal that resulted in one of the largest North American crypto mining companies. After the merger, the new mining entity is now among the largest miners in the world in terms of hash rate, sharing the top spot with firms such as Marathon Digital and Riot Blockchain, according to a filing with the SEC.

Ahead of Bitcoin Halving

Hut 8’s Chief Executive Officer, Jaime Leverton, said the credit facility gives the mining firm "additional financial flexibility."

"At the same time, it ensures that we can maintain our dynamic Bitcoin treasury management strategy going into the halving," she added. Bitcoin halving is an anticipated event that will reduce the rewards given to miners by half.

Bitcoin miners were most recently affected by crypto winter, which was characterized by low prices for digital assets and the collapse of major cryptocurrency companies. One of the miners, Core Scientific, filed for bankruptcy last December and recently filed a chapter 11 plan.

Nomura's new exec; toolkit for responsible use of AI; read today's news nuggets.

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Hut 8 nabs $50M Coinbase credit facility ahead of merger with US Bitcoin

Bitcoin (BTC) miner Hut 8 said on June 26 that its subsidiary, Hut 8 Holdings, entered into a $50 million credit facility agreement with Coinbase Credit for general corporate purposes. Hut 8 stated that the credit facility offers a $15 million term loan that would be funded at or shortly after closing. The facility also […]

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Hut 8 Secures US$50 Million from Coinbase Credit to Enhance Financial Flexibility and Support Growth Initiatives

Hut 8 Mining Corp., a prominent North American mining pioneer and high-performance computing infrastructure provider, has recently made a significant announcement. The company has secured a credit facility of US$50 million through a partnership with Coinbase Credit (Read More)

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Bitcoin miner Hut 8’s shares fall 9% after 2022 financial report

Bitcoin (BTC) mining firm Hut 8’s financial statements for 2022 showed that the miner earned less revenue despite its higher productivity levels, according to a March 9 statement.

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BTC Miner Hut 8 Doubles 2022 Net Loss to $176 Million

<p>Hut 8 Mining Corp., one of North America's largest publicly-listed mining companies, recently announced its financial results for the year and quarter that ended 31 December 2022. Despite the challenging times that the digital asset mining industry experienced, Hut 8 managed to maintain stable revenues. However, the total net loss widened significantly to CAD 242.81 million, showing how cryptocurrency winter made crypto miners' life miserable in 2022.</p><p>Hut 8 Doubles Net Loss in 2022</p><p>Hut 8 revenue decreased by CAD 23.1 million to CAD 150.7 million during the year ended 31 December 2022, compared to CAD 173.8 million reported a year earlier. However, the company mined 3,568 <a href="https://www.financemagnates.com/terms/b/bitcoin/" class="terms__main-term" id="261088a9-0f41-4202-a73c-31f75ba6bd93" target="_blank">Bitcoin</a> (BTC) in 2022, which was a 28.1% increase compared to 2021 due to the rise in hashrate from the expansion of the company's fleet of miners and mining activities. Hut 8 installed an aggregate of 21,455 new MicroBT miners at its three mining sites during a period of twelve reported months.</p><p>However, the increasing number of Bitcoin mined and the relatively small decrease in revenue did not translate positively into a net result. The company was already reporting a net loss of CAD 72.7 million in 2021, and the value has more than doubled to CAD 242.8 million ($176 million). Net loss per share came in at CAD 1.29 compared to CAD 0.54 reported in the same period a year earlier.</p><p>According to Hut 8, the decrease in Bitcoin price during 2022 resulted in a net loss of CAD 134.8 million. This was due to a combination of factors, including lower revenue from digital asset mining operations, higher cost of revenue, and CAD 113.9 million of impairment on digital asset mining CGUs and GPU mining group of assets.</p><p>Despite the poor results, the company's CEO, Jaime Leverton, is optimistic about the future and thanks the team for their commitment to building a diversified business to deliver future revenue growth.</p><p>"As we look ahead, we will continue to uphold these operating principles as we work to close our business combination with USBTC and begin operating as a US-domiciled, digital asset mining, hosting, managed infrastructure operations, and high performance computing organization," Leverton added.</p><p>Troubled Bitcoin Miners Feel the Crypto Winter</p><p>Although the first gusts of warmer March winds and the coming spring can be felt outside the windows, winter in the crypto market does not seem to be melting. Before Hut 8, several other BTC miners and mining-related companies had already published their results for the fourth quarter and full year of 2022, which also showed abysmal results.</p><p>Canaan Inc. (NASDAQ:CAN), a cryptocurrency mining hardware manufacturer, <a href="https://www.financemagnates.com/cryptocurrency/canaan-reports-82-lower-revenue-in-tough-q4-2022/" target="_blank" rel="follow">reported the fourth quarter revenues at $56.8 million</a>, translating to 59.9% quarterly and 82.1% yearly decreases. As a result, Canaan reported a significant decrease in the gross profit for the entire year of 2022, to $253.4 million from $411.2 million reported in 2021.</p><p>HIVE Blockchain Technologies Ltd. (TSX:HIVE), another publicly-listed <a href="https://www.financemagnates.com/terms/c/crypto-mining/" class="terms__secondary-term" id="b7de0d78-81b9-460d-b33d-311d7d0dff0e" target="_blank">crypto mining</a> company, <a href="https://www.financemagnates.com/cryptocurrency/hive-blockchain-reports-90m-loss-in-q4-2022-amid-lower-bitcoin-prices/" target="_blank" rel="follow">lost $90 million in the fourth quarter</a> compared to the $37 million loss reported in the third quarter of the calendar year 2022.</p><p>Northern Data (XETR:NB2), a publicly-listed provider of High-Performance Computing (HPC) solutions from Germany, <a href="https://www.financemagnates.com/cryptocurrency/btc-miner-northern-data-increases-its-crypto-production-by-315-in-2022/" target="_blank" rel="follow">published its own BTC production report</a> showing a 315% boost in crypto production during 2022. The company was able to mine 2,798 tokens and forecasted an annual revenue in the range of EUR 190-194 million. Although the increase is significant, it is still lower than the result for 2021 in revenue expressed in traditional currency.</p><p>According to Glassnode data, mining revenues reached a record-breaking $15.3 billion in 2021 and were significantly reduced in 2022 <a href="https://www.financemagnates.com/cryptocurrency/why-bitcoin-miners-made-6-billion-less-in-2022/" target="_blank" rel="follow">by $6 billion</a>.</p> This article was written by Damian Chmiel at www.financemagnates.com.

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Hut 8’s BTC Production Dips 17% in February, Plans Sale to Fund Operations

<p>Hut 8 Mining, one of North America’s largest digital asset miners, released its February production figures on Tuesday, reporting an 8% decline in BTC production. However, the company said it plans to sell the 156 BTC mined during the month to fund its operating costs.</p><p>Jaime Leverton, Hut 8’s Chief Executive Officer, noted in a statement that the company opted to sell a portion of its stack instead of “seeking other financing options with less attractive terms.” Last month, the company also sold the 188 BTC it mined earlier in January 2023. </p><p>Hut 8’s Produces Less BTC in Feb Despite Merger with US Bitcoin</p><p>In early February, Hut 8 announced its <a href="https://www.financemagnates.com/cryptocurrency/hut-8-merges-with-us-bitcoin-to-fight-crypto-winter/" target="_blank" rel="follow">merger with US Bitcoin</a>, a company that operates four BTC mining centres in the United States. However, with the dip in production in February, it appears both companies are yet to be fully consolidated into one.</p><p>Meanwhile, Hut 8’s production dip came in a month BTC network mining difficulty hit an all-time high, <a href="https://www.financemagnates.com/cryptocurrency/hive-produces-4-less-btc-in-february-as-mining-difficulty-surpasses-40-trillion/" target="_blank" rel="follow">surpassing 40 trillion</a> in late February. In addition, BTC miners <a href="https://www.financemagnates.com/cryptocurrency/why-bitcoin-miners-made-6-billion-less-in-2022/" target="_blank" rel="follow">made $6 billion less in 2022</a> as they cut their revenues due to the <a href="https://www.financemagnates.com/cryptocurrency/whats-next-for-crypto-after-the-chaos-of-2022/" target="_blank" rel="follow">prolonged crypto winter</a>. However, Hut 8 noted that electrical issues at its mining facility in Drumheller, Alberta, also contributed to the reduced production last month. </p><p>Furthermore, Hut 8 relocated its miners and electrical equipment from North Bay, Ontario, to Medicine Hat in Alberta, Canada, in February. Moreover, the company said it temporarily transferred its electrical equipment to a third-party facility during the month.</p><p>Despite these developments, Hut 8 said its total BTC balance held in reserve as of February 28th stood at 7,243. This means that the digital asset miner “continues to hold the largest amount of self-mined <a href="https://www.financemagnates.com/terms/b/bitcoin/" class="terms__main-term" id="261088a9-0f41-4202-a73c-31f75ba6bd93" target="_blank">Bitcoin</a> in reserve of any publicly-traded company.”</p><p>Meanwhile, HIVE Blockchain Technologies, another Canadian crypto miner, recently <a href="https://www.financemagnates.com/cryptocurrency/hive-produces-4-less-btc-in-february-as-mining-difficulty-surpasses-40-trillion/" target="_blank" rel="follow">reported a 4% drop</a> in its BTC production. The firm produced 250 BTC last month compared to 260 BTC mined in January. However, the February production is 17% higher than the 214 BTC produced in December 2022.</p> This article was written by Solomon Oladipupo at www.financemagnates.com.

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Public Miners Are Outperforming Bitcoin

Even with the recent rise in the bitcoin price, public bitcoin mining stocks start the year with more impressive gains than the asset itself.

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Hut 8 CEO Reflects On Bitcoin Mining Industry’s Turbulent Period: Report

In January 2023, Hut 8 CEO Jaime Leverton discussed the rollercoaster ride of the crypto industry’s growth at the Crypto Summit in Davos. She reflected on the recent shakeout and the impact on Bitcoin mining amidst the turbulence, according to a February 21st report. The Turbulent Year of Bitcoin Mining According to Leverton, the Bitcoin […]

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Hut 8 merger would've happened even without FTX or crypto turmoil, says CEO

Falling crypto prices have forced many crypto miners to cut costs or consolidate in order to survive the crypto winter.

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Hut 8 Merges with US Bitcoin to Fight Crypto Winter

<p>Hut 8 Mining Corp. (<a href="https://www.financemagnates.com/tag/hut-8/" target="_blank" rel="follow">NASDAQ:HUT</a>), a digital asset mining company from North America, has announced an all-stock <a href="https://www.financemagnates.com/terms/m/merger/" class="terms__main-term" id="7631c19b-b9f3-43ee-a0cf-d4f8094270bc" target="_blank">merger</a> of equals with an operator of four Bitcoin (BTC) mining centers in the USA, US Bitcoin.</p><p>US Bitcoin and Hut 8 Join Forces</p><p>According to the press release, the combined company will be named Hut 8 Corp. The primary goal of the merger is to create a large scale publicly-trader crypto mining firm focused on diversifying revenue streams, cheaper mining and ESG practices.</p><p>The Boards of Directors of both companies have unanimously agreed to merge, and the new Board will consist of the five directors of Hut 8 and the five directors of US Bitcoin. </p><p>Bill Tai will retain his position as Chairman of the Board, Jaime Leverton will remain as the CEO, and Asher Ganoot will still serve as President. Michael Ho will be appointed the Chief Strategy Officer, while Shenif Visram will remain as the Chief Financial Officer.</p><p>"Bringing together Hut 8's operational track record and diversified revenue streams with US Bitcoin's scalable mining sites, sizeable hosting business, and industry-leading managed infrastructure operations not only accelerates our diversified strategy and positions us for near-term growth, but also establishes us as a strong, U.S.-based player that is ready and able to seize additional opportunities as they arise," Jaime Leverton, the CEO of Hut 8, said.</p><p>Higher Power and Mining Capabilities</p><p>The new Hut 8 will gain access to a total of 825MW of gross power spread across six data centers, each with the ability to mine, manage infrastructure and host independently. The post-merger mining potential of the two companies will reach 5.6 EH/s.</p><p>"We've been searching for the right partner to join us on our ambitious growth journey for some time and are confident that Hut 8 is the perfect fit," Michael Ho, the Co-Founder and CEO of US Bitcoin, said. </p><p>The company will utilize energy from a mix of zero-emission and renewable sources. The mining industry has recently been betting on environmentally friendlier solutions after strong criticism suggesting that it is <a href="https://www.financemagnates.com/cryptocurrency/debunking-5-myths-to-help-you-understand-bitcoins-mining-sustainability/" target="_blank" rel="follow">responsible for excessive carbon dioxide emissions</a>.</p><p>Watch the recent FMLS22 panel on Forex and crypto trends in 2023.</p><p>Crypto Miners Feel the Bitcoin Blues</p><p>Although Bitcoin's price rebounded 40% from multi-month lows in January, the mining industry is far from the results and revenues realized in 2020 or 2021. </p><p>Falling prices for BTC and other <a href="https://www.financemagnates.com/terms/c/cryptocurrencies/" class="terms__secondary-term" id="b091101e-6e02-4b36-aa0e-7c972dfdd6ed" target="_blank">cryptocurrencies</a> have caused many companies to cut back on their workforce, with <a href="https://www.financemagnates.com/cryptocurrency/why-bitcoin-miners-made-6-billion-less-in-2022/" target="_blank" rel="follow">miners earning $6 billion less</a> in 2022 than the year before.</p><p>In January alone, cryptocurrency companies cut 3,000 jobs. These included the <a href="https://www.financemagnates.com/cryptocurrency/crypto-platform-luno-sheds-35-of-workforce/" target="_blank" rel="follow">cryptocurrency platform Luno</a>, which reduced its staff by 35%, and the <a href="https://www.financemagnates.com/cryptocurrency/third-times-the-charm-gemini-cuts-its-workforce-once-again/" target="_blank" rel="follow">exchange Gemini</a>, which decided to cut its workforce for the third time in nine months. </p><p>Mining companies are managing to produce more coins than before, even though the difficulty of mining has increased. Still, this guarantees much lower revenues due to low profitability at current prices. <a href="https://www.financemagnates.com/cryptocurrency/btc-miner-northern-data-increases-its-crypto-production-by-315-in-2022/" target="_blank" rel="follow">Northern Data has increased its production by 315%</a> compared to last year, but this has not translated into better financial results in dollar terms.</p><p>In challenging market conditions, only the strongest can survive. Hence the decision by Hut 8 and US Bitcoin to merge seems perfectly logical. The question is if cryptocurrencies continue to remain cheap in the long term, whether this will lead to further industry consolidation.</p> This article was written by Damian Chmiel at www.financemagnates.com.

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Bitcoin miner Hut 8 takes stoush with Ontario power supplier to court

The lawsuit escalates a months-long dispute between the crypto miner and one of its energy suppliers in Canada.

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Hut 8’s Ontario Bitcoin Mining Operation Halted Amidst Power Disputes

The mining company confirmed the operation is still shuttered after contractual disagreements with their power provider, Validus Power.

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Bitcoin Mining Giant Adds Over 160 BTC to Its Holdings in Final Quarter of 2022

Hut 8, a leading Bitcoin mining company based in North America, announced on January 6th that it had increased its Bitcoin holdings by 161 in the last quarter of 2022. It brings the company’s total self-mined BTC to 9,086. According to the company’s production report for December 2022, it generated an average of approximately 5.2 Bitcoin per […]

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Hut 8 Loss Deepens Despiite 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.

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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.

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