Cryptologic Announces Second Quarter Financial Results

Cryptologic (CSE:CRY), bitcoin mining company reported C$9.5 million in revenue for the second quarter, rising from C$2.7 million during the same time period in 2018. Over the quarter, Cryptologic mined 992 bitcoins, with a cost of revenue standing at C$4,444 per bitcoin. Net income for the company stood at C$2.9 million, surging significantly from the same time period last year, where the company reported a net loss of over C$51 million.

As quoted in the press release:

Cryptologic mined a total of 992 Bitcoin in the three months ended June 30, 2019, at an average price per Bitcoin for the quarter of $9,743. The Company achieved an Adjusted EBITDA¹ of $4.6 million, or $0.36 per outstanding share, resulting in an Adjusted EBITDA Margin¹ of 48% for the three months ending June 30, 2019. The Company’s cost of revenue, which includes electricity cost, contractors’ fees and general facility operating costs, but excludes non-cash depreciation of mining and infrastructure equipment, resulted in an average cost per Bitcoin mined of $4,444, an increase of $732 or 19% from $3,712 for the three months ended March 31, 2019. The increase in the cost of mining a Bitcoin is attributable to the increase in network difficulty corresponding to an increase in network hashrate, resulting in fewer coins mined for the period on a per miner basis. Average network difficulty for the three months ended June 30, 2019, was 6.87 trillion as compared to 5.97 trillion for the three months ended March 31, 2019.

The Company reported net income of $2.9 million for the quarter on revenue of $9.5 million. For the six months ended June 30, 2019, the Company reported a net loss of $0.3 million on revenue of $14.9 million.

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