Miner Hut 8 Reports Q2 Revenue Plunged 67% to $6.9 Million Due to Bitcoin Halving

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.

The Toronto Stock Exchange-listed firm extracted simply 795 bitcoin (BTC) within the April to June quarter, in contrast to 1,165 BTC within the previous three-month interval.

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.

Management blamed the decline in income to the Bitcoin third halving occasion of May 11, which slashed miner rewards by 50% to 6.25 BTC per block.

“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.

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