:format(jpg)/www.coindesk.com/resizer/r4hCNh4zR8o4AxiOYIgV0l2Wigc=/arc-photo-coindesk/arc2-prod/public/QPY362MKDVA77CB4EHZRXW2KZM.jpeg)
Eliza Gkritsi is CoinDesk’s crypto mining reporter based in Asia.
Bitcoin miner Hut 8 Mining (HUT) first-quarter revenue dropped a greater-than-estimated 64% to C$19 million ($14.16 million) from the year earlier as the company was forced to turn off some machines due to a dispute with its energy provider.
Revenue fell 13% from the previous quarter, missing analyst expectations of C$21.2 million. The Toronto-based company reported earnings per share (EPS) of C$0.47 compared with forecasts for a loss of C$0.15 on FactSet.
While the crypto mining industry is staring to emerge from a brutal crypto winter that saw major names like Compute North and Core Scientific (CORZ) file for chapter 11 bankruptcy protection, Hut 8 had to turn off about 8,000 machines in its Ontario facility due to a dispute with its energy provider in mid-November. Since then, it has managed to bring only about 1,000 back online.
On top of that, its facility at Drumheller, Alberta is operating at just 15% capacity due to electrical problems that have damaged the equipment. The site likely accounts for about 0.9 EH/s of Hut 8’s total 2.6 EH/s of computing power.
Hut 8 stock was little changed in pre-market trading on the Nasdaq, down 0.55% at $1.82 at the time of writing. The shares have more than doubled in price in 2023, but remain lower by 34% on a year-over-year basis.
Hut 8 is in the process of a merging with U.S. Bitcoin Corp. (USBTC), a private miner with operations in New York and Texas.
CORRECTION (May 11, 12:16 UTC): Corrects per-share figures to Canadian dollars in second paragraph. An earlier version of this story had them in U.S. dollars.
Edited by Sheldon Reback.
DISCLOSURE
Please note that our
and
do not sell my personal information
has been updated
.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a
strict set of editorial policies.
CoinDesk is an independent operating subsidiary of
which invests in
and blockchain
As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of
which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG
.
Eliza Gkritsi is CoinDesk’s crypto mining reporter based in Asia.
Learn more about Consensus 2024, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.
Eliza Gkritsi is CoinDesk’s crypto mining reporter based in Asia.
https://www.coindesk.com/business/2023/05/11/hut-8-first-quarter-revenue-drops-64-as-bitcoin-mining-difficulties-bite/?utm_medium=referral&utm_source=rss&utm_campaign=headlines
