Hut 8 Reports Surprising Fourth-Quarter Loss, Shares Fall

The miner’s fourth-quarter revenue was in line with predictions, while EBITDA fell short of expectations.

Hut 8 Mining (HUT), a Canadian cryptocurrency miner, revealed an unexpected fourth-quarter adjusted loss of C$0.67 (loss of $0.53) per share.
According to FactSet data, the average analyst estimate indicated earnings of C$0.17.

According to the miner, the loss was mostly attributable to a non-cash revaluation loss of $114.2 million on liability warrants, which was somewhat offset by increasing revenue.

It announced quarterly revenue of C$57.9 million, up 345 percent year over year and in line with analyst expectations of C$57.9 million.

As of December 31, 2021, the corporation held a total of 5,518 bitcoin (BTC) worth $323.9 million, including 2,000 bitcoin borrowed as part of their fiat yield plan. Hut 8 self-mined 4,729 bitcoins in the third quarter.

Earnings before interest, taxes, and depreciation (EBITDA) in the fourth quarter were C$35.27 million, below analysts’ estimates of C$37.1 million and C$30.7 million in the previous quarter.

By February 28, 2022, Hut 8’s hashrate had climbed to 2.5 exahashes per second (EH/s), up from around 2.0 EH/s on December 31, 2021. Its current hashrate capacity is roughly 3.55 EH/s upon receipt and deployment of all ordered miners.

At 09:30 ET, the miner will host a conference call.

Its stock sank 3.5 percent in pre-market trading, while bitcoin fell over 1%.

 

Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.

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