Canadian miner Hut 8 Mining Corp has reported that second quarter income tumbled 67% to $6.9 million from $21.2 million a 12 months in the past, as Bitcoin’s provide lower in May pressured manufacturing to decline.
However, Hut 8 posted a web revenue of $2.1 million thanks to the revaluation of its bitcoin holdings, which generated $7.6 million.
Still, Q2 web earnings present a decline of 91% from the $22.7 million reported a 12 months earlier. The agency stated revenue from mining actions got here in at $440,000, down from $13.four million the 12 months earlier than.
Altogether, Hut 8 ended the evaluate quarter with 2,954 BTC on its steadiness sheet.
“The network difficulty decreased subsequent to the halving by 15%, but quickly returned back to levels prior to the halving,” stated the corporate, in its earnings release on August 13.
“This posed a difficult challenge to many bitcoin miners as they saw the bitcoin block reward drop by 50% with similar network difficulty rates meaning that revenue dropped by nearly 50% for all bitcoin miners, including Hut 8,” it added.
During the quarter, Hut 8 raised $6.2 million from a share sale. The funds have been used to purchase new mining , which is anticipated to add 275 petahash per second to the corporate’s current mining capability.
Shares of Hut 8 rose four.four% to $zero.89 in Toronto buying and selling Friday. Over the previous 52 weeks, the inventory has reached a low of $zero.38 and a excessive of $1.98.
What do you assume and Hut 8’s second quarter earnings? Let us know within the feedback part beneath.
The put up Miner Hut 8 Reports Q2 Revenue Plunged 67% to $6.9 Million Due to Bitcoin Halving appeared first on Bitcoin News.