Hut 8’s Q2 Loss Widens to $69M, Continues to Hodl Bitcoin

Canadian bitcoin (BTC) miner Hut 8 (HUT) noted a C$88.1 million ($69 million) loss for the second quarter of the year, as it continued its diversification towards other types of data centers.

For the same quarter last year, Hut 8 recorded a loss of C$4 million, while in the previous quarter the miner had recorded a profit of a C$55.7 million.

This quarter’s loss was driven by the revaluation of its digital assets, but was «partially offset by higher revenue and the non-cash revaluation gain on warrants liability,» the firm said in its earnings statement on Thursday.

Hut 8 withdrew its 2023 revenue growth guidance released with its previous quarterly earnings, as it reorganizes «certain low-margin product and service offerings» related to its high-performance computing (HPC) business.

In January, Hut 8 acquired five HPC data centers for C$30.2 million. Revenue from its HPC business rose 43% to C$4.7 million compared to the previous quarter.

However, the firm’s mining profit was more than halved to C$14.9 million compared to Q1, due to higher power costs and the decline in the price of bitcoin, the company said. The miner’s cost of mining each bitcoin grew by 44% to C$25,900, around what it was in the second quarter of 2021.

Hut 8 generated total revenue of C$43.8 million for the quarter, down by 22% compared to the previous quarter but up one-third year-on-year.

The miner mined 946 bitcoin in the quarter, almost unchanged from the 942 it mined in the first quarter of the year.

Hut 8’s bitcoin holdings grew by 14.6% to 7,406 in the quarter, keeping up with its pace of growth in the previous three months.

The miner continued to hold on to its mined bitcoin, contrary to other mines who have started to sell in order to keep up with running costs and debt obligations.

The firm’s Nasdaq-listed shares were up over 5% at $2.87, during pre-market trading. Other miners’ share prices also noted gains in the past 24 hours, along with the price of bitcoin.

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