According to a March 9 statement, Bitcoin (BTC) mining company Hut 8’s 2022 financial statements show low miner earnings despite high productivity levels.
According to Yahoo Finance dataAfter the announcement, Miner’s stock fell 8.78% to $1.35.
Bitcoin production increased by 28%
Hut 8’s BTC production will grow by 28% to 3,568 bitcoins in 2022. The company said that the increase in production levels was due to an increase in hashrate.
In 2022, Hut 8 announced that it has installed 21,455 new mining machines across its three facilities. These installations resulted in a 25% increase in hashrate to 2.5 EH/s excluding the North Bay facility and GPU mining.
Hut8 revenue drops to $150.7 million
However, Canada-based miners report Revenue in the prior year decreased $23.1 million to $150.7 million. The company’s revenue for 2021 was $173.8 million.
Despite declining revenue, the company’s high-performance computing business generated $16.9 million, according to financial reports. Overall, his mining profit in 2022 is $60.4 million, well below his $108.1 million in 2021.
The company explained that the decline in revenue is due to the falling Bitcoin valuation in 2022. BTC hit an all-time high in 2021, but the flagship digital asset struggled for most of his second half of 2022 as the industry faced the capitulation of several cryptocurrencies. enterprise.
These events caused BTC to drop in value and the asset struggled to trade above $20,000.
Hut8 holds over 9,000 BTC
Meanwhile, the company said it is in good financial shape despite lower revenue. At the end of the year, the company announced that it held 9,086 BTC of him. This equates him to $203.6 million.
However, it reported a net loss of $242.8 million, well above the $72.7 million recorded in 2021. This was due to lower mining revenues, impairment of GPU and CGU mining assets, and higher production costs. Nevertheless, the company ended his year with a positive Adjusted EBITDA of $32 million.
Hut 8 CEO Jaime Leverton said he looks forward to the company maintaining its operating principles this year.
Leverton said the recent merger with Bitcoin U.S. will allow it to “begin operations as a U.S.-based digital asset mining, hosting, managing infrastructure operations, and high-performance computing organization.” Added.
