Bitcoin Miner Hut 8 Experiences Steep Revenue Decline
Canadian Bitcoin miner, Hut 8 Mining (HUT), reported a first-quarter revenue dip of 64% year-on-year, sliding to C$19 million ($14.16 million), Coindesk reported. The fall in revenue was more significant than anticipated, following a dispute with the company's energy provider that led to an enforced shutdown of around 8,000 machines at its Ontario facility in mid-November.
The company's financial performance also fell short of analyst expectations for the quarter, with revenues dropping by 13% from the previous quarter against predictions of C$21.2 million. Notably, Hut 8 reported earnings per share (EPS) of C$0.47, in contrast to FactSet forecasts predicting a loss of C$0.15 per share.
Compounding these difficulties, the company's Drumheller, Alberta site has been operating at just 15% capacity due to electrical issues causing damage to equipment. This site is believed to contribute around 0.9 EH/s to the company's total computing power of 2.6 EH/s.
Despite these setbacks, Hut 8 shares have shown resilience in pre-market trading on the Nasdaq, dipping by only 0.55% to $1.82. The company's share price has more than doubled in 2023, although it is still down 34% on a year-over-year basis.
In other developments, Hut 8 is currently in the process of merging with U.S. Bitcoin Corp. (USBTC), a private miner with operations in New York and Texas. This move comes at a time when other major names in the crypto mining industry, like Compute North and Core Scientific (CORZ), have sought bankruptcy protection.