Hut 8 Mining Reports Financial Results for Third Quarter 2018

Hut 8 Mining (TSXV:HUT) has announced its Q3 financial results for the quarter ended September 30.

As quoted in the press release:

Hut 8 reports all amounts in Canadian Dollars unless otherwise stated.

• Record revenue of $17.7 million for Q3 and $36.4 million for the nine months ended September 30, 2018.
• Adjusted EBITDA of $7.1 million for Q3 and $18.7 million for the nine months ended September 30, 2018.
• Completion of installation and operation of 56 BlockBoxes in the City of Medicine Hat facility (“CMH”), representing an increase of 67.2 MW of operating capacity.
• Closing of US$16 million loan facility with Galaxy Digital.
• 1,978 bitcoin mined in Q3.

Q3 2018 was the first quarter for Hut 8 that included the impact of mining operations at our CMH facility, which includes 40 BlockBoxes beginning in July 2018, together with an additional 16 BlockBoxes in September 2018, for an aggregate of 56 BlockBoxes at that site.  As a result of this increased capacity, Hut 8 produced $17.7 million of revenue for the quarter, its largest ever for a single quarter and a 126% increase from the prior quarter revenue of $7.8 million.

The Company also recorded $7.2 million in Adjusted EBITDA, an 86% increase from the prior quarter of $3.9 million, largely as a result of increased revenue from the new facility at CMH. Efficiency of the ASIC chips used to mine bitcoin is expected to increase during the colder months in Alberta, leading to improved performance in Q4 when compared to Q3.

Hut 8’s cost for mining a bitcoin in Q3 2018 was US$3,394, which is below the current market bitcoin price of approximately US$6,500, making Hut 8 amongst the lowest-cost miners of bitcoin in the world. This is reflected in the Company’s quarterly results, as its mining profit for the quarter was $8.8 million with a mining profit margin of 51%.

Click here to read the full press release.