Hut 8 Increased its Bitcoin Holdings by 65%, Yet Revenue Plunged

Canada-based cryptocurrency miner – Hut 8 Mining – released its financial results for the year and quarter that ended December 31st, 2022.

The company managed to increase its mining production by over 28% year over year and ramp up its fiat revenues by CA$16.9 million. However, it was still not spared by the suppression in Bitcoin price, fluctuating power prices, and increased network difficulty.

• Hut 8’s revenue was down by over 13% to CA$150.7 million during the year that ended December 31, 2022, compared to CA$173.8 million recorded in 2021.
• On the bright side, the company mined 3,568 Bitcoin last year. This represented a 28.1% increase compared to 2021, attributed to an increase in hash rate from the expansion of its fleet of miners and mining activities.
• In a statement, the company’s CEO Jaime Leverton highlighted that 2022 was a challenging time for the entire industry but believes his firm “fared well.” The exec went on to add,

“As we look ahead, we will continue to uphold these operating principles as we work to close our business combination with USBTC and begin operating as a US-domiciled, digital asset mining, hosting, managed infrastructure operations, and high-performance computing organization.”

• Hut 8 held a total Bitcoin balance of 9,086 in custody with a market value of $203.6 million by the end of 2022, which it described as “self-mined, unencumbered.”
• Moreover, 100% of self-mined Bitcoin was deposited into custody by Q4.
• The mining profit was recorded at CA$60.4 million for the year, down by over 44% as compared to CA$108.1 million in 2021, primarily due to a lower average Bitcoin price and increased average power costs, the company said.
• Hut 8 Mining announced merger plans with US Bitcoin to form Hut 8 Corp, or “New Hut,” last month.