Canadian crypto miner Hut 8 profits up 250% in its best quarter ever

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Hut 8 Mining Corp. has posted its financial results for the second quarter of 2019 revealing the company has returned to profitability after a few rough quarters. The company posted record quarterly net income of CAD $33.7 million ($25.3 million), with CAD $0.43 earnings per share.

Hut 8, which is listed on the Toronto Stock Exchange, managed to reduce its cost of mining one SegWitCoin (BTC) to $2,757 while the price of one BTC rose from $4,158 at the beginning of the quarter to $10,817 at the end.

The company recorded CAD $28.3 million ($21.3 million) in revenues for the quarter, up by 262% from the same period in 2018 when it recorded CAD $7.8 million ($5.9 million).

The company undertook several measures which all contributed to the stellar performance, the company’s CEO Andrew Kiguel stated. He added:

In addition, management has reduced corporate overhead quarter over quarter. Our cost reduction initiatives put in place during crypto-winter came to fruition during the second quarter to produce exceptional earnings per share of $0.43 for shareholders. In addition, our strategy of retaining bitcoin resulted in a gain of $22.4 million re-measurement of our bitcoin inventory. If Hut 8 had sold its entire bitcoin inventory at the end of Q1-2019, we would not have had the benefit of the appreciation in the price of bitcoin during Q2-2019.

Kiguel also reiterated that the company remains committed to the mining of BTC and that it will keep retaining an inventory of BTC as it anticipates price appreciation. The company’s management has been instrumental in its performance, he added, revealing that it has been in full support of cost saving measures at the company. This has ensured Hut 8 maintains a lean cost structure.

“The strategy led to improved margins and the ability to leverage the appreciation in the price of bitcoin. Our operations are stronger than ever, and we are poised for improved financial performance going forward,” he added.

Crypto mining companies have enjoyed a great year thus far, with the prices of most cryptos bouncing back after a bleak 2019. As CoinGeek recently reported, Argo Blockchain recently announced that it had expanded its crypto mining capabilities. The company, listed on the London Stock Exchange, increased its electricity supply by 357%, allowing it to triple its hash rate.