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.
According to Yahoo Finance data, the miner’s shares declined 8.78% to $1.35 after the announcement.
Bitcoin production increased by 28%
Hut 8’s BTC production rose 28% to 3,568 Bitcoin in 2022. The firm said its improved production level was because of its increased hashrate.
In 2022, Hut 8 said it installed 21,455 new mining machines across three facilities. These installations helped to increase its hashrate by 25% to 2.5 EH/s excluding its North Bay facility and GPU mining.
Hut8’s revenue dropped to $150.7M
However, the Canadian-based miner reported that its revenue for the previous year declined by $23.1 million to $150.7 million. In 2021, the firm earned $173.8 million.
Despite the revenue decline, the financial report showed that its high-performance computing operations generated $16.9 million. Overall, its mining profit for 2022 was $60.4 million, far below the $108.1 million it made in 2021.
The firm explained that its revenue decline was caused by the drop in Bitcoin’s valuation in 2022. While BTC galloped to an all-time high in 2021, the flagship digital asset struggled for most of 2022’s second half as the industry faced the capitulation of several crypto firms.
These events led to BTC’s value falling and the assets struggled to trade above $20,000.
Hut8 holds over 9k BTC
Meanwhile, despite the declined revenue, the mining firm said it was in good financial health. At the end of the year, the firm said it held 9,086 BTC — valued at $203.6 million.
However, it reported a net loss of $242.8 million, far above the $72.7 million it recorded in 2021. This was because of its lower mining revenue, impairment of its GPU and CGU mining assets, and the higher cost of production. Regardless, it finished the year with a positive adjusted EBITDA of $32 million.
Hut 8 CEO Jaime Leverton said the firm looks forward to maintaining its operating principles in the current year.
Leverton added that the recent merger with U.S. Bitcoin Corp. would allow it to “begin operating as a US-domiciled, digital asset mining, hosting, managed infrastructure operations, and high-performance computing organization.”