Hut 8 Mining, a Toronto-based digital asset miner, recently announced its second-quarter financial results. While the company reported a narrower loss compared to the previous year, its revenue took a hit due to the ongoing challenges posed by the network difficulty in mining bitcoin.
Positive Trend in Losses
During Q2, Hut 8 Mining recorded a loss of 16.7 million Canadian dollars ($12.4 million), equivalent to C$0.08 per share. This represents a significant improvement compared to the loss of C$88.1 million (C$0.49 per share) in the same period last year. Analysts had predicted a similar outcome and their projections align with the company’s performance, as reported by FactSet.
Decline in Revenue
Although Hut 8 Mining managed to narrow its losses, its revenue witnessed a decline. The company generated C$19.2 million in revenue during the second quarter, down from C$43.8 million in the previous year. Analysts had anticipated a slightly smaller decline, projecting revenue to be around C$21.2 million.
Bitcoin Mining Challenges
Hut 8 Mining mined 399 bitcoin during the period, marking a significant decrease of 58% compared to the previous year. This decline can mainly be attributed to the network difficulty experienced when mining the digital asset.
Changes in Mining Activity
In addition to the challenges posed by network difficulty, Hut 8 Mining made strategic adjustments to its operations. The company halted its graphic-processing units (GPUs) mining activity after the Ethereum network switched from proof-of-work to proof-of-stake in Q3 of the previous year.