Canadian miner Hut 8 Mining Corp has reported that second quarter revenue tumbled 67% to $6.9 million from $21.2 million a year ago, as Bitcoin’s supply cut in May forced production to decline.
However, Hut 8 posted a net profit of $2.1 million thanks to the revaluation of its bitcoin holdings, which generated $7.6 million.
Still, Q2 net earnings show a decline of 91% from the $22.7 million reported a year earlier. The firm said profit from mining activities came in at $440,000, down from $13.4 million the year before.
Altogether, Hut 8 ended the review quarter with 2,954 BTC on its balance sheet.
“The network difficulty decreased subsequent to the halving by 15%, but quickly returned back to levels prior to the halving,” said the company, in its earnings release on August 13.
“This posed a difficult challenge to many bitcoin miners as they saw the bitcoin block reward drop by 50% with similar network difficulty rates meaning that revenue dropped by nearly 50% for all bitcoin miners, including Hut 8,” it added.
During the quarter, Hut 8 raised $6.2 million from a share sale. The funds have been used to buy new mining hardware, which is expected to add 275 petahash per second to the company’s existing mining capacity.
Shares of Hut 8 rose 4.4% to $0.89 in Toronto trading Friday. Over the past 52 weeks, the stock has reached a low of $0.38 and a high of $1.98.
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