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Hut 8 Achieves Record High Annual Revenue of $173.8m

A prominent Canadian cryptocurrency mining company, Hut 8 achieves a record high annual revenue of $173.8 million. Bitcoin holdings will increase by 100% to 5,518 by the end of 2021, with a market cap of $323.9 million.

Hut 8’s fourth-quarter 2021 financial results, released Thursday, showed overall revenue soaring to $45.69 million (C$57.901 million), nearly quadrupling the $10.25 million (C$12.986 million) in the previous year’s fourth quarter.

Revenue for the year ended December 31, 2021, was $173.8 million, a 327% increase from the previous year’s annual revenue of just $40.7 million.

Jaime Leverton, CEO of Hut 8, said that:

“2021 was truly a transformational year at Hut 8, complemented by considerable growth. In pursuing a diversified strategy, we have differentiated ourselves from our peer group and in doing so, have become the only company in North America to both mine digital assets while building on our traditional infrastructure business to support companies in Web 3.0 and the Metaverse.”

Despite making huge profits from mining activities, the company said it posted a net loss of $72.7 million for the year ended December 31, 2021, compared with a net income of $19 million for the same period in 2020.

It posted an overall loss of $0.53 (C$0.67) per share in the fourth quarter. Loss per share for the full year 2021 was $0.43 (C$0.54).

Hut 8 is a digital asset mining company with industrial-scale operations in Alberta, Canada. On December 3 last year, Hut 8 was the first company in the industry to be included in the S&P TSX index.

Crypto Miner Hut 8 Launches New Facility in Ontario, Bitcoin Mining Production Remains Robust

On Monday, Hut 8 Mining Corp, a Bitcoin mining company, published its Bitcoin (“BTC”) production and miner installation updates for May 2022.

Based on the latest report by Hut 8 Mining Corp, the cryptocurrency mining business is a good investment. It is evident that most miners look solidly profitable.

Hut 8 improved its Bitcoin holdings in the period that ended May 31. Last week on Thursday, the mining firm announced that it started operations in its third mining facility at its North Bay site in Ontario, Canada. In late May, the company began testing its North Bay facility and started operating on 15 MW of power on June 2, adding approximately 400 PH/s to its operating capacity.

According to the report, Hut 8 mined 309 Bitcoins in May, hitting an average production rate of 10 Bitcoin per day. The firm decided to hold on to all of its self-mined Bitcoins in line with its long-standing HODL strategy.

As of May 31, Hut 8 said that it has a total of 7,078 BTC held on its balance sheet and installed an operating capacity of 2.64 exahash per second. Its Ethereum mining constituted about 14% of its total production, the company mentioned.

According to the company’s statement, since power costs continued to fluctuate throughout the month, the firm had to limit consumption at its facility at Drumheller (a town in Canada) as the spot price for power spiked.

Hut 8 said it is continuing to add miners and increase its power supply throughout June and expects that the North Bay mine will have a significant impact on its production results going forward.

Jaime Leverton, CEO of Hut 8, talked about the development and said: “We are thrilled that our most powerful and efficient machines are now mining Bitcoin at our North Bay site. Over the next several weeks, our team will continue installing and bringing miners online in real-time, complementing production at our facilities in Medicine Hat and Drumheller.”

Investors Seeing Compelling Opportunities in Miners

The latest development by Hut 8 is a testimony that crypto mining companies are providing a compelling investment alternative compared with other forms of direct and indirect exposure to cryptocurrencies.

Mining is still highly profitable and gross margins remain super healthy despite the sharp decline in crypto prices and an increasing network hashrate.

Major Bitcoin mining firms such as Marathon Digital, Hut 8, Bitfarms, Hut 8, Argo Blockchain, and Bit Digital have continued to build cost leadership and production scale, which provide better investment opportunities than volatile cryptocurrencies.

They have become a popular way in which many investors seek to invest indirectly in the underlying asset.

Hut 8 Purchases 5,800 Mining Rigs to Improve Productivity in Ontario

Hut 8, a Bitcoin mining company based in Canada, announced on Wednesday that it has bought 5,800 mining machines for its Ontario facility.

With the latest purchase, these mining rigs to its fleet at its mining facility at the North Bay site in Ontario. Hut 8 mentioned that new machines will add greater petahashes per second (PH/s) of hashrate to its Bitcoin mining capacity, once fully deployed.

The firm expects the addition of the new miners to help increase its mining production capacity, especially during this bear market that has seen a significant drop in mining output alongside a plunge in crypto prices.

Hut 8 disclosed that its machines at its North Bay site in Ontario were operating on 20 megawatts (MW) of power, as of June 30.

Currently, the Bitcoin mining firm said its total operating capacity in computing power stood at 2.78 exahash/second (EH/s).

Hut 8 revealed that it mined 328 Bitcoins during June and increased its holdings to 7,406 BTC ($148 million).

The company disclosed that it would continue to hold its mined Bitcoins. This is in contrast to other miners are selling their Bitcoins to pay operating expenses and loan obligations. On Tuesday, Core Scientific, a major mining firm in the industry, sold 7,202 Bitcoins in June to raise $167 million.

With the ongoing crypto winter, all miners are witnessing declining profits as Bitcoin prices dropped last month. Some mining firms are facing margin calls on debt issued during bull periods as the value of their collateral, normally mining machines or Bitcoin, has also dropped.

Hut 8 is one of the least leveraged publicly-traded Bitcoin mining companies relative to its equity. The firm had CAD$140 million ($107 million) in cash as of the end of last year, according to its annual earnings report.

Hut 8 has diversified its revenue streams away from cryptocurrency. Its high-performance computing business is on track to see a growth of up to 18% by the end of 2022.

Hut 8 is not the only Bitcoin mining firm to have added its mining rigs during this market crash. Mid-last month, CleanSpark, a Bitcoin mining based in California, purchased an addition of 1,800 Antminer S19 XP computers to take advantage of the bear market and the fallen prices for Bitcoin mining rigs.

CleanSpark capitalized on the current difficult market conditions, where the plunge in Bitcoin prices led to a drop in the prices of ASICs, computerized devices specifically used for mining Bitcoin or another cryptocurrency.

Hut 8 Mining Corp Generated 330 BTC in July, Becoming one of the Largest BTC Holders

North American publicly traded cryptocurrency mining company Hut 8 Mining Corp has announced its operational update of July.

Last month, Hut 8 revealed that it mined 330 Bitcoins at an average rate of 10.61 Bitcoins per day.

As of July 31, 2022, Argo said it held 7,736 bitcoins, making it one of the largest public holders of Bitcoins traded on Nasdaq and the Toronto Stock Exchange.

Hut 8 revealed that Hut 8 holds 100% of all its self-mined Bitcoin in escrow as part of its ongoing HODL strategy,

The company revealed that it will continue to hold the mined bitcoins. This starkly contrasts with other miners selling bitcoin to pay for operating expenses and loan debt.

Mining company Argo said it sold 887 bitcoins in July at an average price of around $22,670. The company said it used the funds to reduce debt under a BTC-backed loan agreement with Galaxy Digital and to cover operating expenses and growth capital.

Argo said it recently signed Foundry as a cloud services customer to enhance its high-performance computing business. The company now expects its mining machines to produce better performance and have greater control over operations, including operating expenses.

CEO Jaime Leverton said of the development: “At the same time, we continue to focus on growing the uncorrelated recurring revenue within our high-performance computing business and are thrilled to welcome Foundry aboard as a cloud services customer in our Mississauga data center.”

Hut 8, a Bitcoin mining company based in Canada, announced on July that it has bought 5,800 mining machines for its Ontario facility.

Hut 8 Secures US$50 Million from Coinbase Credit to Enhance Financial Flexibility and Support Growth Initiatives

Hut 8 Mining Corp., a prominent North American mining pioneer and high-performance computing infrastructure provider, has recently made a significant announcement. The company has secured a credit facility of US$50 million through a partnership with Coinbase Credit, Inc., a leading lender in the cryptocurrency industry. This credit facility will provide Hut 8 with additional financial flexibility and support its general corporate purposes.

The credit facility consists of a US$15 million term loan, which is expected to be funded shortly after the closing of the agreement. Additionally, the credit facility offers the option to draw an additional US$20 million delayed-draw term loan in a second borrowing, taking place between one and two months following the initial funding. Furthermore, there is a provision for an additional US$15 million delayed-draw term loan tranche in a third borrowing within 15 business days after the completion of Hut 8’s previously announced merger with U.S. Data Mining Group, Inc., also known as “US Bitcoin Corp.” These borrowing options are subject to maintaining a specified loan-to-value ratio.

To determine the interest rate, the amounts borrowed under the credit facility will bear interest at a rate equal to the greater of the federal funds rate on the borrowing date or 3.25%, plus 5.0%. The credit facility has a maturity of 364 days from the date of the first borrowing. The borrower’s interest in certain Bitcoin held in the custody of Coinbase Custody Trust Company, LLC serves as collateral for the loan obligations. Furthermore, the credit facility is guaranteed by Hut 8, providing an added layer of assurance for the lender.

CEO Jaime Leverton expressed enthusiasm for the credit facility, stating, “This credit facility gives us additional financial flexibility. At the same time, it ensures that we can maintain our dynamic Bitcoin treasury management strategy going into the halving.” This development aligns with Hut 8’s strategic objectives and will contribute to its ongoing operations, growth initiatives, and expansion plans.

Hut 8 is a key player in the digital asset mining landscape, focusing on innovation and powered by a team of visionary technologists. With two operational digital asset mining sites located in Southern Alberta, Hut 8 boasts one of the highest capacity rates in the industry. Additionally, the company holds a substantial inventory of unencumbered, self-mined Bitcoin, solidifying its position as a major player in the global digital asset mining sector.

Moreover, Hut 8 is revolutionizing the data center industry by creating the first hybrid data center model that serves both traditional high-performance computing (Web 2.0) and emerging digital asset computing sectors, blockchain gaming, and Web 3.0. With over 36,000 square feet of geographically diverse data center space, Hut 8 is committed to sustainable practices, with its electrical grids powered by significant renewable and emission-free resources.

It is worth noting that Hut 8 made history by becoming the first Canadian digital asset miner to list on the Nasdaq Global Select Market, a significant achievement that underscores its market presence and leadership position. The company’s relentless pursuit of innovation, combined with its passion for digital asset revolution, enables it to create value and positive impacts for shareholders and future generations.

While this announcement brings about positive prospects for Hut 8, it is important to exercise caution regarding forward-looking information. Factors such as security threats, regulatory changes, market demand, and unforeseen events like the COVID-19 pandemic and climate change can impact the company’s operations and performance. Hut 8 acknowledges these risks and uncertainties, and although they consider their statements reasonable, actual results may differ materially from the forward-looking information provided.

Hut 8 Q2 2023 Report: $19.1 Million Revenue with 9,136 Self-Mined Bitcoin in Custody

On August 14, 2023, Hut 8 Mining Corp, one of North America’s major pioneers in the mining of digital assets, released its financial results for the second quarter of 2023. The report offers a thorough look at the business’ performance, including both successes and problems encountered throughout the quarter.

Financial Highlights

Quarterly Revenue: Hut 8 reported a revenue of CAD $19.1 million for Q2 2023, including CAD $4.2 million from its high-performance computing (HPC) business. This marks a decrease of CAD $24.6 million compared to the CAD $43.8 million revenue in Q2 2022.

Bitcoin Mining: The company mined 399 Bitcoin during the quarter, a 58% decrease compared to the same period in 2022. This decrease was attributed to increased Bitcoin network difficulty, suspension of operations at the North Bay Facility, and ongoing electrical issues at the Drumheller facility.

Bitcoin Holdings: As of June 30, 2023, Hut 8 possessed 9,136 Bitcoins that they mined themselves, either held in custody or used as collateral, valued at CAD $368.7 million.

Financial Downturn: For Q2 2023, Hut 8 reported a net deficit of CAD $16.7 million, translating to a loss of CAD $0.08 per share. This is in contrast to the previous year’s Q2 loss of CAD $88.1 million or CAD $0.49 per share.

Profit from Mining: The company’s mining-related earnings for the quarter stood at CAD $3.2 million, a decline from CAD $14.9 million in the same quarter of 2022.

EBITDA Adjustments: The EBITDA, after adjustments, showed a negative CAD $2.7 million. This is an improvement from the negative CAD $98.1 million recorded in the second quarter of the previous year.

Strategic Developments

Merger with USBTC: Hut 8 continued to progress towards closing its transaction with USBTC, aiming to improve post-merger self-mining capacity to 7.5 EH/s. The merger is expected to expand into more stable energy markets and increase exposure to capex-light, scalable, fiat-based revenue streams.

Challenges at Drumheller: The company faced mining challenges at its Drumheller site, reflecting decreased revenue and fewer Bitcoin mined. However, the team implemented new custom firmware and procured new hardware to expedite repairs.

Five-Year Contract in HPC Business: Hut 8’s high-performance computing business signed a significant five-year contract, with revenue realization expected later in the year.

Future Outlook

Hut 8’s CEO, Jaime Leverton, emphasized the company’s unique approach to growing its business primarily through inorganic means, focusing on an infrastructure-first mindset. The acquisition of the HPC business and the merger with USBTC are seen as strategic moves to position the company on a path to growth.

The company also announced its intention to potentially acquire certain assets of Validus Power Corp, a previous energy supplier to Hut 8’s mining facility in North Bay, Ontario. This move is expected to resolve all litigation claims and counterclaims between Hut 8 and certain Validus Entities.

Conclusion

The decrease in revenue and Bitcoin mining is balanced by the company’s efforts to diversify its business and invest in long-term opportunities. The upcoming merger with USBTC and the potential acquisition of Validus Power Corp’s assets are key developments that reflect Hut 8’s commitment to innovation and expansion in the digital asset mining space.

Bitcoin Mining Giant Hut 8 Set to Merge with USBTC

Hut 8 Mining Corp. (Nasdaq: HUT) (TSX: HUT), one of North America’s leading digital asset and bitcoin mining pioneers, has announced further developments regarding its proposed all-stock merger with U.S. Data Mining Group, Inc., also known as US Bitcoin Corp (USBTC). The resulting entity from this merger will be christened “Hut 8 Corp.” and will be based in the U.S.

The primary objective of this merger is to establish Hut 8 Corp. as a major publicly traded Bitcoin miner with a focus on economical mining, diversified revenue avenues, and adherence to top-tier environmental, social, and governance (ESG) practices.

In line with this development, Hut 8 Corp. has made amendments to its Form S-4 Registration Statement, which has been filed with the U.S. Securities and Exchange Commission (SEC). Jaime Leverton, CEO of Hut 8, commented on the progress, stating, “We look forward to securing SEC clearance for New Hut’s registration statement in the very near term while we work to complete this merger of equals.” Leverton further emphasized the potential of the merged entity, highlighting its anticipated strengths in both Bitcoin and fiat revenues, stemming from a robust infrastructure across North America.

However, the completion of this transaction is contingent upon several factors, including regulatory approvals, shareholder and court consents, and other standard closing conditions.

Hut 8’s legacy in the industry is notable, with a portfolio that includes five high-performance computing data centers spread across British Columbia and Ontario. These centers offer a range of services from cloud computing to AI and machine learning solutions. Additionally, Hut 8 operates two Bitcoin mining sites located in Southern Alberta and boasts one of the highest inventories of self-mined Bitcoin among publicly-traded companies worldwide.

While this press release provides a positive outlook on the merger, it also contains forward-looking statements. These are based on current expectations and projections about future events but are subject to various risks and uncertainties. Factors such as regulatory approvals, market demand, and geopolitical events, among others, could influence the final outcome of this merger.

For a detailed understanding and further information about the merger, interested parties are advised to refer to the Form S-4 Registration Statement and other relevant documents filed with the SEC.

US Bitcoin Corp-Hut 8 Merger Progresses Amid Celsius Plan Approval

U.S. Data Mining Group, Inc., doing business as US Bitcoin Corp (USBTC), today announced two pivotal developments: the progression of its merger with Hut 8 Mining Corp (“Hut 8”) and the court approval of the Celsius bankruptcy restructuring plan.

USBTC is advancing its all-stock merger (the “Transaction”) with Hut 8, a leading North American digital asset mining and high-performance computing infrastructure provider. The Securities and Exchange Commission (SEC) declared the registration statement for the merger effective on November 9. Asher Genoot, President and Co-Founder of USBTC, expressed enthusiasm about the merger, stating, “Joining forces with Hut 8 marks a new phase of growth for our shared company. This merger shows our ongoing dedication to operational excellence and provides a strengthened platform for our shared future.”

The merger is anticipated to be finalized by November 30, 2023, pending approval from USBTC stockholders and other customary closing conditions. Post-merger, the common stock of the new entity, Hut 8 Corp. (“New Hut”), is expected to be listed on the Nasdaq and the Toronto Stock Exchange under the proposed ticker symbol HUT.

In another significant development, USBTC, alongside consortium partners Arrington Capital, Proof Group, Steve Kokinos, and Ravi Kaza, acknowledges the court’s approval of the Celsius bankruptcy restructuring plan. This approval marks a crucial step for the consortium to begin managing Celsius’s assets and operations. The plan received overwhelming support from creditors, with a 95% approval rate.

The approved plan outlines a strategy for establishing and operating a new public, regulatory-compliant company to manage Celsius’ illiquid assets. This move signifies USBTC’s commitment to shaping the future of the cryptocurrency industry through operational excellence and innovative solutions.

USBTC, founded by visionary entrepreneurs and experienced executives, is a prominent North American mining company known for its efficiency, eco-friendliness, and large-scale operations. With campuses in New York, Nebraska, and Texas, USBTC aims to set industry standards.

Recently, Hut 8 Mining Corp has received the green light from the Canadian Supreme Court for the merger with USBTC. This approval further solidifies the merger’s progression and highlights Hut 8’s commitment to transparency and regulatory compliance in the cryptocurrency mining sector.

Hut 8 Secures Enhanced $65M Credit Line with Coinbase

Hut 8, a prominent digital asset mining company in North America, just announced a significant amendment and restatement of its credit facility with Coinbase, marking a pivotal moment in the digital asset financing realm, according to PRNewswire. This new arrangement has increased the total loan amount to $65 million, an addition of $15 million to the existing credit line. This development is particularly notable for its use of Bitcoin as collateral, underscoring the evolving landscape of digital asset utilization in corporate finance.

Overview of the Deal

Hut 8, alongside its subsidiary Hut 8 Mining Corp., renegotiated its credit facility with a Coinbase subsidiary. The revised terms offer a $15 million extension, culminating in a $65 million loan under the amended facility. This move aligns with Hut 8’s strategy to leverage its Bitcoin holdings for liquidity, avoiding outright sales while maintaining exposure to potential cryptocurrency appreciations. Such strategies are increasingly crucial for navigating market fluctuations.

Financial Implications

The loan arrangement carries an interest rate pegged to the higher of the federal funds rate on the borrowing date or 3.25%, with an additional 5.0%. The maturity of the credit facility is set at 364 days following the initial borrowing. Hut 8’s innovative approach, using Bitcoin as collateral held by Coinbase Custody Trust Company, LLC, speaks volumes about the growing acceptance and institutionalization of cryptocurrencies.

Hut 8’s Strategic Direction

Hut 8’s business model, focusing on Bitcoin mining and hosting, along with high-performance computing, illustrates a forward-thinking approach in digital asset utilization. With eleven sites, including high-performance computing data centers and Bitcoin mining facilities, Hut 8 stands at the forefront of merging infrastructure, energy, and emerging technologies like AI and machine learning.

Legal and Regulatory Considerations:

The legal framework surrounding digital assets as collateral is still in its developmental stages. This agreement between Hut 8 and Coinbase’s subsidiary is pioneering in its handling of digital asset custody and security interests. Investors and stakeholders should closely monitor the evolving legal and regulatory landscape affecting such innovative financial instruments.

Market Impact and Institutional Involvement:

This deal between Hut 8 and Coinbase might signal growing confidence in the stability and future value of Bitcoin. It sets a precedent for similar agreements and could catalyze increased institutional involvement in the digital asset sector. The ability to use cryptocurrency holdings as leverage for liquidity could become a benchmark for future transactions.