Bitcoin miner Hut 8’s shares fall 9% after 2022 financial report
Bitcoin (BTC) mining company Hut 8’s 2022 financial statements showed the miner earned less revenue despite higher productivity levels, according to a March 9 statement.
According to Yahoo Finance data, the miner’s shares fell 8.78% to $1.35 after the announcement.
Bitcoin production increased by 28%
Hut 8’s BTC production rose 28% to 3,568 Bitcoin in 2022. The firm said its improved production level was due to the increased hash rate.
In 2022, Hut 8 said it installed 21,455 new mining machines across three facilities. These installations helped increase the hash rate by 25% to 2.5 EH/s excluding the North Bay facility and GPU mining.
Hut8’s revenue fell to $150.7 million
However, the Canadian-based miner reported that revenue for the previous year was down $23.1 million to $150.7 million. In 2021, the firm earned $173.8 million.
Despite the revenue decline, the financial report showed its high-performance computing business generated $16.9 million. Overall, mining profit for 2022 was $60.4 million, well below the $108.1 million it earned in 2021.
The firm explained that the revenue decline was caused by the fall in Bitcoin’s valuation in 2022. While BTC galloped to an all-time high in 2021, the flagship digital asset struggled for most of 2022’s second half as the industry faced the capitulation of several cryptocurrencies. companies.
These events caused BTC’s value to drop and the asset struggled to trade above $20,000.
Hut8 has over 9k BTC
Meanwhile, despite the reduced earnings, the mining company said it was in good financial health. At the end of the year, the firm said it had 9,086 BTC – valued at $203.6 million.
However, it reported a net loss of $242.8 million, well above the $72.7 million it recorded in 2021. This was due to lower mining revenues, weakening GPU and CGU mining revenues and the higher production costs. Regardless, it ended the year with a positive adjusted EBITDA of $32 million.
Hut 8 CEO Jaime Leverton said the firm looks forward to maintaining its operating principles this year.
Leverton added that the recent merger with US Bitcoin Corp. would allow it to “begin operating as a US-domiciled digital asset mining, hosting, managed infrastructure operations and high-performance computing organization.”
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