• Hut 8, a Canadian Bitcoin mining firm, saw a sequential drop in Bitcoin production in December 2022.
• The firm sold power back to the provider due to high energy prices, resulting in a decrease in production.
• Hut 8’s Bitcoin treasury reached 9,086, up 65% from its balance at the end of 2021.
Hut 8, a Canadian Bitcoin mining firm, saw a sequential drop in Bitcoin production in December 2022. The firm sold power back to the provider due to high energy prices, resulting in a decrease in production. Hut 8’s Bitcoin treasury reached 9,086, up 65% from its balance at the end of 2021.
In December 2022, Hut 8 increased its Bitcoin holdings by 161, representing a decline of 32.35% from November’s 238 Bitcoins. Further, the firm mined Bitcoin at an average of 5.2 Bitcoin/day in December – a fall from the November average of 7.9 Bitcoin/day. The Company’s total Bitcoin count on December 31 stood at 9,086.
The decrease in production is due to high energy prices that led the mining firm to sell power back to the provider. As part of its efforts to mitigate the impact of the issues with the energy supplier, Hut 8 is exploring organic and inorganic growth options. To protect its Bitcoin holdings, the firm deposited 100% of the self-mined Bitcoin in December into its custody in accordance with its long-standing strategy.
The decrease in production had an adverse effect on the company’s revenue. Hut 8’s net revenue decreased from $50.3 million in Q3 2021 to $31.7 million in Q3 2022, a decline of $18.6 million. Despite this, the Company mined 982 Bitcoin in Q3 2022, an 8.5% increase over Q3 2021 due to the expansion of the Company’s fleet of miners and mining activities.
Despite the drop in production and revenue, Hut 8 was one of the few mining firms to increase its Bitcoin holdings in the face of a market downturn. Companies in the mining industry suffered heavily from the bear market and this made it difficult for them to remain profitable. Hut 8 was able to weather the storm, however, and its Bitcoin treasury stands as a testament to its resilience.