Hut 8 Corp., a prominent Bitcoin miner in North America, recently disclosed its financial results for the second quarter of 2024. Despite experiencing a substantial 72% year-over-year revenue growth to reach $35.2 million, the company reported a significant net loss of $71.9 million. This financial outcome was primarily driven by a $71.8 million loss resulting from the fair value adjustment of its digital assets, which was influenced by the newly implemented Financial Accounting Standards Board rules and a decline in Bitcoin prices. Additionally, the company’s adjusted EBITDA plummeted to negative $57.5 million, marking a substantial decrease from the positive $14.8 million reported in the second quarter of 2023.
Amidst these financial challenges, Hut 8 managed a total energy capacity of 1,075 megawatts (MW) across 18 sites, with 762 MW dedicated to Bitcoin mining operations in North America. The company’s mining fleet consisted of approximately 49,400 miners capable of producing 4.8 exahash per second (EH/s). However, during the second quarter of 2024, Hut 8 mined only 279 Bitcoins, compared to 740 in the same period the previous year. The weighted average cost to mine a Bitcoin also rose to $26,232, indicating an increase from $14,907 in the second quarter of 2023.
Despite these operational and financial setbacks, Hut 8’s CEO, Asher Genoot, highlighted the positive aspects of the company’s ongoing restructuring efforts. Genoot emphasized that the results for the quarter reflected the ambitious restructuring program initiated six months prior. He also noted the success in reducing energy costs, with the energy cost per megawatt-hour decreasing to $31.71 from $37.34 compared to a year earlier. Looking ahead, Hut 8 is gearing up to upgrade its mining fleet and launch its GPU-as-a-service vertical in the third quarter of 2024. The company plans to construct a new site in the Texas Panhandle with 205 MW of low-cost and long-term power to accommodate up to 16.5 EH/s of next-generation ASICs. Scaling the power footprint remains a central strategy for the company’s future growth.
Furthermore, Hut 8’s $150 million partnership with Coatue aims to expedite the commercialization of its energy infrastructure platform, positioning the company to benefit from large-scale infrastructure development opportunities. Despite the challenging financial performance in the second quarter of 2024, Hut 8 remains optimistic about its future prospects. By focusing on operational efficiencies, restructuring initiatives, and strategic partnerships, the company aims to navigate the volatile cryptocurrency market and capitalize on long-term growth opportunities.