Hut 8, one of North America’s largest Bitcoin (BTC-USD) miners, has just released its Q2 2024 earnings, showing a massive revenue jump amid the recent Bitcoin crash. The company reported $35.2 million in revenue for the quarter, a significant leap from $20.5 million in the same period last year. But the real story lies in the details.
Hut 8 Sees Strong Revenue Surge Despite Bitcoin Struggles
“Our results this quarter reflect the ambitious restructuring program we set in motion six months ago,” said Asher Gen oot, Hut 8’s CEO. The company managed to boost its gross margins in the Digital Assets Mining segment to 46%, up from 34% a year ago. This improvement came despite the network halving, thanks to a 21% reduction in energy costs per kilowatt-hour.
Hut 8’s total energy capacity under management also increased to 1,075 megawatts, spread across 18 sites. This includes nine Bitcoin mining locations and several power generation facilities. The company owns around 49,400 miners, giving it a total capacity of 4.8 exahash per second.
Hut 8’s Reports Mixed Results on the Bottom Line
Despite the revenue growth, the bottom line was less rosy. Hut 8 reported a net loss of $71.9 million, driven largely by a $71.8 million loss on digital assets due to the falling price of Bitcoin. Adjusted EBITDA also took a hit, coming in at a negative $57.5 million, down from $14.8 million in Q2 2023.
On the bright side, the company’s weighted average cost to mine a Bitcoin was $26,232, a significant increase from $14,907 the previous year. However, the revenue per Bitcoin mined also saw a huge jump, averaging $65,656 compared to $27,927 in Q2 2023.
HUT Shifts Towards AI and Energy
Looking ahead, Hut 8 is not just sticking to Bitcoin (BTC-USD). The company closed a $150 million strategic investment from Coatue to build AI infrastructure. Genoot emphasized that Hut 8’s future lies in expanding its energy footprint and upgrading its fleet. “We believe high-quality power assets will become increasingly valuable,” he noted.
Is Hut 8 a Good Stock to Buy?
Analysts remain cautiously bullish about HUT stock, with a Moderate Buy consensus rating based on four Buys and one Sell. Over the past year, HUT has decreased by more than 15%, and the average HUT price target of $15.37 implies an upside potential of 35% from current levels.
