Hut 8 Reports Decline in Q2 Revenue amid Low Mining Output

<p>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.</p><p>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.</p><p>Hut 8's Operational Challenges</p><p>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 <a href="https://www.financemagnates.com/terms/h/hash-rate/">hashrate</a>
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.</p><p>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."</p><p>Hut 8 is in progress to <a href="https://www.financemagnates.com/cryptocurrency/hut-8-merges-with-us-bitcoin-to-fight-crypto-winter/" target="_blank" rel="follow">merge with US Bitcoin Corporation</a> 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.</p><p>Exploring New Avenues</p><p>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.</p><p>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.</p><p>Meanwhile, <a href="https://www.financemagnates.com/institutional-forex/bitcoin-miner-hut-8-secures-50m-credit-facility-from-coinbase/" target="_blank" rel="follow">Finance Magnates</a> reported
in June that Hut 8 had successfully <a href="https://www.financemagnates.com/institutional-forex/bitcoin-miner-hut-8-secures-50m-credit-facility-from-coinbase/" target="_blank" rel="follow">secured a credit facility</a> worth
USD $50 million from Coinbase Credit, the subsidiary of the US-based cryptocurrency
<a href="https://www.financemagnates.com/terms/e/exchange/">exchange</a> Coinbase. The credit arrangement is collateralized by Bitcoins held by
Coinbase and is aimed at supporting the general corporate needs of Hut 8.</p>

This article was written by Jared Kirui at www.financemagnates.com.