Hut 8 Mining Posts Weak Q2 Results Amid Mining Challenges

Hut 8 Mining Corp HUT reported a Q2 FY23 revenue of C$19.2 million, down from C$43.8 million a year ago.

High-performance computing (HPC) operations generated monthly recurring revenue of C$4.2 million in Q2 2023 vs. C$4.7 million in Q2 2022 on discontinuing certain low-margin products and service offerings, and customer churn.

As of June 30, 2023, the company mined 399 Bitcoin and sold 396 in the quarter, receiving proceeds of C$14.7 million.

The mined Bitcoin fell 58% Y/Y, owing to an increase in average Bitcoin network difficulty, the impact of the suspension of operations at the North Bay Facility, and ongoing electrical issues at the Drumheller facility.

As of June 30, 2023, the company had a total self-mined Bitcoin balance held in custody or pledged as collateral of 9,136 with a market value of C$368.7 million.

Mining Profit declined to C$3.2 million from C$14.9 million in the prior year's quarter due to a decline in Bitcoin price, a lower quantity of Bitcoin mined, a halt in the Company's GPU mining activities, and disruptions at the facilities.

Adjusted EBITDA loss came in at C$(2.69) million compared to C$(98.14) million the prior year. 

EPS loss stood at C$(0.08) compared to C$(0.49) the prior year. 

As of June 30, 2023, the company's installed hashrate stood at 2.6 EH/s (excluding the company's North Bay facility) vs. 2.6 EH/s as of March 31, 2023.

The company held cash of C$26.69 million at the end of Q2 FY23.

Also Read: Hut 8's Crypto Empire Expands With A $50M Boost From Coinbase

Price Action: HUT shares are trading lower by 8.06% at $2.73 on the last check Monday.