Hut 8 Mining Reports Financial Results for Second Quarter 2018

Hut 8 Mining (TSXV:HUT) has announced its financial results for Q2 ended June 30, 2018.

As quoted in the press release:

As of June 30, 2018, Hut 8 had 82,808,400 shares outstanding, 595,000 stock options, and 945,600 warrants.

With a mining profit margin of 64%, the cost of mining bitcoin in Q2 2018 was $3,618 (US$2,721) per bitcoin. Hut 8 believes it is amongst the lowest cost miners of bitcoin in the world. The Company anticipates the cost per bitcoin to remain competitive, based on the increasing difficulty rate, offset by the facility in the City of Medicine (the “CMH Facility”), which operates more efficient, next generation BlockBoxes.

“Hut 8 continued to produce a positive mining operating margin and adjusted EBITDA in Q2 2018, despite the price of bitcoin declining by 15% over the quarter and mining difficulty increasing by 69%. In our Q3 2018, we will see the positive impact of our CMH Facility, which was completed on July 11, 2018 and represents a 350% increase in our operating capacity resulting in 360 PH/s increase in output,” said Andrew Kiguel, President and Chief Executive Officer of Hut 8.

Due to the decrease in the price of bitcoin in Q2 2018, Hut 8 incurred a $1.8 million non-cash loss on the re-measurement of the value of bitcoin in inventory, and consequently finished the quarter with a net loss of about $4.9 million. In future quarters, when revenue is recorded, the Company would expect to see unrealized gains or losses based on the price of bitcoin on the corresponding reporting date, relative to the price on the day mined.

“We are optimistic about the long-term direction of the price of bitcoin. We continue to hold our bitcoin, after paying for expenses,” said Kiguel.

Click here to read the full press release.