Bitcoin miner Hut 8 suffered a net loss of C$88.1 million (roughly $69 million) as well as a 17.8% drop in revenue during the second quarter 2022. Canada-based Hut 8 saw its hash rate increase by 9.5% to 2.78 exahash/second (EH/s), by the end the second quarter.
Hut 8 Bitcoin miner reported a net loss C$88.1million (about $69 Million) and a 17.8% decrease in revenue to C$43.9 ($34.3million) in the second quarter 2022.
According to a Thursday report, the company’s financial results were affected due to the lower average bitcoin price as well as higher average power costs.
Jaime Leverton, CEO, stated that “we have been anticipating market volatility almost a year” and had taken proactive measures to navigate the current downturn through all phases of the cycle.
Despite the market turmoil, the company managed to keep its bitcoin reserves intact. It produced 946 Bitcoins in the second quarter, and its bitcoin reserves increased by 14.6% to 7,406 BTC.
Leverton stated that it didn’t make economic sense to sell bitcoins at low prices.
Hut 8 decided to sell bitcoin and instead sought additional funds to expand its mining operations, “without being dependent on capital markets.” This includes yields from its bitcoin reserves as well as revenue from high-performance computing, which was C$4.7million ($3.7 million) last quarter.
Leverton said that “we were very deliberate in recalling the 2000 bitcoin we had in the yield program into our possession late May before contagion spread throughout the industry.”
Hut 8 saw a 9.5% increase in its hash rate to 2.78 exahash per sec (EH/s), by the end of the quarter. It also increased its capacity at three of Canada’s sites (North Bay Drumheller, Medicine Hat).