Canadian miner posts $17.7M Q3 revenue

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Toronto-listed Hut 8 Mining Corp. reported a cryptocurrency mining profit of CAD8.9 million ($6.7 million), and revenue of CAD17.7 million ($13.4 million) in the third quarter.

The company, which claims to be the largest public cryptocurrency mining company by operational capacity and market capitalization, said in its report that it had a mining profit margin of 51%, with site operating costs amounting to CAD8.7 million ($6.6 million).

Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) was CAD7.2 million ($5.5 million). It had a net loss of CAD11.4 million ($8.6 million), or CAD0.14 ($0.11) per share. Operations made for 1,978 BTC mined, at a cost of $3,394 per coin, “making Hut 8 among the lowest-cost miners of [BTC] in the world,” it said.

According to Hut 8, the third quarter was the first period impacted by operations at its facility in Medicine Hat, Alberta, which led to the company’s largest revenue for a single quarter. “Efficiency of the ASIC chips used to mine [BTC] is expected to increase during the colder months in Alberta, leading to improved performance in Q4 when compared to Q3,” the miner said. The Medicine Hat facility has 56 BlockBox datacenters operating at a maximum of 67.2 megawatts (MW) and 500 Petahashes per second.

It also has a facility in Drumheller, Alberta, with maximum operating power capacity of 18.7 MW.

Revenue for the first nine months of the year was CAD36.4 million, with mining profit of CAD22.7 million ($17.2 million), a 62% profit margin. Adjusted EBITDA for January to September was CAD18.7 million ($14.2 million).

Hut 8 explained the lower margin for the third quarter as a result of increased competition from other miners, and to a lesser degree, higher power costs.

Hut 8 CEO Andrew Kiguel noted that the heat wave during the summer in Alberta led to increased prices of electricity. “We are actively managing our exposure to market prices through a number of different means. Despite this, Hut 8 achieved record revenue for Q3 and strong overall margins.”

According to the company, since it began mining operations in December of last year, it has mined more than 4,200 BTC.

Hut 8 has an exclusive arrangement with the Bitfury Group, which allows the miner “to construct, optimize and manage data centres in low-cost and attractive jurisdictions.”

Bloomberg recently reported that Bitfury is considering ways to raise funds, including an initial public offering (IPO), which if it takes place in Europe, would be the largest listing in the continent, and would reportedly increase the company’s value to $3 billion-$5 billion in the next couple of years.