Hut 8 (HUT) up 9% as it mined 905 Bitcoin in Q3
17:29, 11 November 2021
Hut 8 Mining (HUT) stock rose on the Nasdaq as the Canadian cryptocurrency miner reported a third consecutive quarter of revenue gains.
For the period ended 30 September, Hut 8 reported total revenue of C$50.3m (£30m) from C$5.8m in the same period last year. Hut 8 also turned a profit in the third quarter, reporting net income of C$23.4m from a loss of C$900,000 a year earlier.
On the Nasdaq, Hut 8 stock gained as much as 9% early in the session. As at 12:20 ET (UTC-5) the stock was up 3% at $14.51 per share.
Holds 5,053 Bitcoin
Hut 8's bitcoin balance as at 10 November was approximately 5,053 Bitcoin, reflecting a market value of approximately $430m. The balance includes 2,000 Bitcoin loaned as part of Hut 8's fiat yield strategy, Hut 8 said.
Hut 8 currently has an installed hashrate of approximately 1.7 EH/s, which includes the converted hashrate from its fleet of NVIDIA GPUs. 1 EH/s is one quintillion hashes per second, a standard measure of computational workrate.
Total current and contracted capacity stands at approximately 4.5 EH/s, Hut 8 said.
What is your sentiment on BTC/USD?
Conference call
On an earnings call, CEO Jaime Leverton was asked how Hut 8 ranks against other crypto mining companies.
"We are certainly among the largest and I think it's really subjective. Going forward as far as how do you view largest and how do you compare one against the other, we're certainly not all the same. Sometimes there are large and sometimes there are subtle nuances between our businesses and our go-to-market strategies," Leverton said.
"I wouldn't be in a position to put an apples-to-apples comparison between the miners. We will leave it up to our analysts and our shareholders to assess really based on what they think about the market and what they value in a miner's structure."
– Photo: Hut 8 MiningManagement experience
Hut 8's Leverton – who has experience gained at cloud company Aptum as well as major Canadian corporations such as Blackberry, Bell and IBM Canada – also pointed out that not all crypto miners are the same.
"I do think that our investor base understand that our metrics can't be compared directly to how other companies report their metrics and it hasn't been a problem, it has been a journey of education and the investor base, from our perspective, has done an incredible job of doing that homework effectively," Leverton said on the call.
Hut 8 operates two cryptocurrency mining facilities in Albert and is working on a third mining site in North Bay, Ontario which is expected to be online by the end of December.
The company said that in the third quarter, site operating costs were C$16m versus $7.5m in the prior-year period, reflecting power consumption from increased hash rate and the fact that mining equipment was operating at reduced capacity for much of the third quarter of 2020, in response to compressed self-mining economics.
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