The Canadian-based Bitcoin mining firm Hut 8
has released its financial results for the second quarter of 2023, revealing a
decline in revenue and low mining output. The decline in performance was
reportedly due to multiple factors, including suspended operations at specific
facilities and issues with the supply of electricity.
Hut 8’s revenue decreased by USD $25 million
to USD $19 million during the quarter ended June 30. This compares to USD $44
million reported during the corresponding period of last year. Additionally,
the company mined 399 Bitcoins in the quarter, which is a 58% year-over-year
decline.
Hut 8’s profit from mining operations dropped
to USD $3.2 million from USD $14.9 million in the second quarter of last year. Besides that, the firm’s installed hashrate
was 2.6EH/s as of June 2023. Hut 8 reportedly suspended operations at its North
Bay facility and faced electrical issues at the Drumheller facility during the period.
Jaime Leverton, the CEO of Hut 8, said: “We continued to build momentum toward closing our transaction with USBTC
by progressing toward receiving regulatory approvals to proceed and improving
our projected post-merger self-mining capacity to 7.5 EH/s. We have been unique
in our approach to growing our business primarily through inorganic means, and
have done so with an infrastructure-first mindset.”
Hut 8 is in progress to merge with US Bitcoin Corporation to
form a new entity dubbed Hut 8 Corporation. The deal, which is expected to be
concluded by September 30, will reportedly increase the company’s self-mining
capacity to 7.5 EH/s.
Exploring New Avenues
During the quarter, Hut 8 entered into a
transaction support agreement with Macquarie Equipment Finance regarding a
potential acquisition of the assets of Validus Power Corporation. Thus, a
stalking horse bid is expected to be submitted for the proposed sale.
Hut 8 stated that the stalking horse bid, which refers to a bid submitted for a bankrupt firm to prevent other firms from underbidding the purchase price, could resolve litigation claims between Hut 8 and Validus Entities.
Meanwhile, Finance Magnates reported
in June that Hut 8 had successfully secured a credit facility worth
USD $50 million from Coinbase Credit, the subsidiary of the US-based cryptocurrency
exchange Coinbase. The credit arrangement is collateralized by Bitcoins held by
Coinbase and is aimed at supporting the general corporate needs of Hut 8.
The Canadian-based Bitcoin mining firm Hut 8
has released its financial results for the second quarter of 2023, revealing a
decline in revenue and low mining output. The decline in performance was
reportedly due to multiple factors, including suspended operations at specific
facilities and issues with the supply of electricity.
Hut 8’s revenue decreased by USD $25 million
to USD $19 million during the quarter ended June 30. This compares to USD $44
million reported during the corresponding period of last year. Additionally,
the company mined 399 Bitcoins in the quarter, which is a 58% year-over-year
decline.
Hut 8’s profit from mining operations dropped
to USD $3.2 million from USD $14.9 million in the second quarter of last year. Besides that, the firm’s installed hashrate
was 2.6EH/s as of June 2023. Hut 8 reportedly suspended operations at its North
Bay facility and faced electrical issues at the Drumheller facility during the period.
Jaime Leverton, the CEO of Hut 8, said: “We continued to build momentum toward closing our transaction with USBTC
by progressing toward receiving regulatory approvals to proceed and improving
our projected post-merger self-mining capacity to 7.5 EH/s. We have been unique
in our approach to growing our business primarily through inorganic means, and
have done so with an infrastructure-first mindset.”
Hut 8 is in progress to merge with US Bitcoin Corporation to
form a new entity dubbed Hut 8 Corporation. The deal, which is expected to be
concluded by September 30, will reportedly increase the company’s self-mining
capacity to 7.5 EH/s.
Exploring New Avenues
During the quarter, Hut 8 entered into a
transaction support agreement with Macquarie Equipment Finance regarding a
potential acquisition of the assets of Validus Power Corporation. Thus, a
stalking horse bid is expected to be submitted for the proposed sale.
Hut 8 stated that the stalking horse bid, which refers to a bid submitted for a bankrupt firm to prevent other firms from underbidding the purchase price, could resolve litigation claims between Hut 8 and Validus Entities.
Meanwhile, Finance Magnates reported
in June that Hut 8 had successfully secured a credit facility worth
USD $50 million from Coinbase Credit, the subsidiary of the US-based cryptocurrency
exchange Coinbase. The credit arrangement is collateralized by Bitcoins held by
Coinbase and is aimed at supporting the general corporate needs of Hut 8.
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- Source: https://www.financemagnates.com//cryptocurrency/hut-8-reports-decline-in-q2-revenue-amid-low-mining-output/
