The Losses Cause by Revaluation of its Digital Assets
Canadian bitcoin (BTC) miner Hut 8 (HUT) reported a loss of 88.1 million CAD or 69 million USD during the second quarter, as opposed to a loss of 4 million CAD and a profit of 55.7 million CAD in the corresponding quarters of the prior year.
Hut 8 stated in its financial statement on Thursday that the loss in the most recent quarter was caused by the revaluation of its digital assets, but that it was partially offset by greater sales and the non-cash revaluation gain on warrants obligation.
In its first-quarter results release, Hut 8 provided an estimate of its revenue for the next year. However, as it reorganizes some low-margin product and service offerings associated with its high-performance computing (HPC) division, Hut 8 has now withdrawn that forecast.
Five HPC data centers were purchased by Hut 8 in January for 30.2 million CAD. The HPC division’s revenue increased 43% from the first quarter to 4.7 million CAD in the second quarter.
Each Bitcoin Miner’s Cost Increased by 44%!
Due to increasing power costs and the drop in the price of bitcoin, Hut 8’s mining earnings, however, decreased by more than half to 14.9 million CAD from the first quarter, the firm reported. Each bitcoin miner’s cost increased by 44% to 25,900 CAD, roughly matching its level from the second quarter of last year.
Hut 8’s overall sales increased by around 33% from a year earlier, although it decreased by 22% from the first quarter to 43.8 million CAD.
In comparison to the 942 bitcoins it mined in the first quarter, the miner produced 946 in the second. In the quarter, Hut 8’s bitcoin holdings increased 14.6% to 7,406, maintaining the same rate of growth as the prior three months.
In contrast to other miners that have begun selling their bitcoin in order to cover operational costs and fulfil commitments, the miner has kept hold of its mined bitcoin.
Shares of Hut 8 that are traded on the Nasdaq were up roughly 5% at $2.87 in early trading. The shares of other miners increased along with the cost of bitcoin.
Source: https://www.thecoinrepublic.com/2022/08/13/hut-8s-q2-losses-skyrocketing-to-69m/