Canadian Bitcoin ( BTC ) mining company Hut 8 has reported record
revenue in the third quarter (Q3) of 2018, according to the
company’s quarterly financial report published Nov. 8.
Hut 8, which claims to be “the largest” public crypto mining
company by operating capacity and market capitalization, has revealed
its financial results for Q3 of this year, stating that its revenue
reached a record high $13.5 million for Q3, and $27.7 million for the
nine months ending on Sep. 30.
Revenue increased by 126 percent compared to the previous quarter
revenue of $5.9 million. Hut 8 attributed the increase to its
deployment of 16 Bitfury BlockBoxes in September at its mining
facility in the City of Medicine Hat, for an aggregate of 56
BlockBoxes at that site. Each BlockBox contains 176 mining servers and
reportedly has a hashrate of 13.7 Pethashes per second (Ph/s).
In Q3, Hut 8’s cost for mining a single Bitcoin was $3,394, which
is lower than the current market price of around $6,400 , which is
reflected in the report as the company’s mining profit for Q3 was
$6.6 million, with a mining profit margin of 51 percent. Hut 8 claims
that this makes it one of the lowest-cost BTC mining companies
globally.
Hut 8’s mining profit margin and adjusted earnings before interest,
taxes, depreciation, and amortization (EBITDA) was lower during Q3
for a few reasons. The BTC price significantly appreciated through the
quarter, while competition from other BTC miners increased. Another
factor was the record high temperatures in Alberta, which resulted in
increased electricity costs at Hut 8’s Drumheller facility.
The company expects that the efficiency of Application-Specific
Integrated Circuit ( ASIC ) chips used to mine cryptocurrencies will
rise during the colder months, which subsequently will improve
performance in the next quarter.
Hut 8 launched its Medicine Hat facility in July in partnership with
BTC mining equipment manufacturer BitFury. At that time, Hut 8 had
mined around 1,000 BTC since its launch in December of last year.
Meanwhile, BTCC Pool, the mining operation of Hong Kong -based
cryptocurrency exchange BTCC, announced it will close
“indefinitely” at the end of November due to unknown “business
adjustments.” BTCC nonetheless expressed a sense of optimism,
hinting that the decision to close down was not strictly permanent.
revenue in the third quarter (Q3) of 2018, according to the
company’s quarterly financial report published Nov. 8.
Hut 8, which claims to be “the largest” public crypto mining
company by operating capacity and market capitalization, has revealed
its financial results for Q3 of this year, stating that its revenue
reached a record high $13.5 million for Q3, and $27.7 million for the
nine months ending on Sep. 30.
Revenue increased by 126 percent compared to the previous quarter
revenue of $5.9 million. Hut 8 attributed the increase to its
deployment of 16 Bitfury BlockBoxes in September at its mining
facility in the City of Medicine Hat, for an aggregate of 56
BlockBoxes at that site. Each BlockBox contains 176 mining servers and
reportedly has a hashrate of 13.7 Pethashes per second (Ph/s).
In Q3, Hut 8’s cost for mining a single Bitcoin was $3,394, which
is lower than the current market price of around $6,400 , which is
reflected in the report as the company’s mining profit for Q3 was
$6.6 million, with a mining profit margin of 51 percent. Hut 8 claims
that this makes it one of the lowest-cost BTC mining companies
globally.
Hut 8’s mining profit margin and adjusted earnings before interest,
taxes, depreciation, and amortization (EBITDA) was lower during Q3
for a few reasons. The BTC price significantly appreciated through the
quarter, while competition from other BTC miners increased. Another
factor was the record high temperatures in Alberta, which resulted in
increased electricity costs at Hut 8’s Drumheller facility.
The company expects that the efficiency of Application-Specific
Integrated Circuit ( ASIC ) chips used to mine cryptocurrencies will
rise during the colder months, which subsequently will improve
performance in the next quarter.
Hut 8 launched its Medicine Hat facility in July in partnership with
BTC mining equipment manufacturer BitFury. At that time, Hut 8 had
mined around 1,000 BTC since its launch in December of last year.
Meanwhile, BTCC Pool, the mining operation of Hong Kong -based
cryptocurrency exchange BTCC, announced it will close
“indefinitely” at the end of November due to unknown “business
adjustments.” BTCC nonetheless expressed a sense of optimism,
hinting that the decision to close down was not strictly permanent.
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