Canadian firm Hut 8 reports Bitcoin Mined in Q1 decreased 54% due to price volatility

Hut 8 Mining announced on Monday that first quarter revenues increased 5% to $ 9 million from $ 8.59 million a year ago after bitcoin (BTC) dived suddenly. Quarterly sales decreased by 14%.

During the three-month period ending March 31, 2020, the Canadian bitcoin firm reported extracting 1116 BTC, 54% less than 2405 BTC done a year earlier. He blamed the decline on "the increasing difficulty of the network (which) had a negative impact on the company's production".

At the end of the quarter, cabin 8 had approximately 3,000 BTC valued at approximately $ 26.8 million at current market prices.

Adjusted earnings (loss) before interest, taxes, depreciation and amortization decreased to $ 0.43 million, compared to a loss of $ 0.92 million in the first quarter of 2019. A large portion of the loss occurred at the end two weeks in March, when the price of BTC

The Toronto-listed company said net loss had worsened to $ 5.96 million, compared to $ 4.30 million last year, as costs of operating the site increased.

Included in the publication of results

this is a loss for revaluation of digital assets of $ 0.91 million compared to the profit for the previous year of $ 0.71 million. The loss results from a 10% decrease in the BTC price during the review period.

During the quarter, Hut 8 finalized the refinancing of an unsecured Bitfury loan with an extension of $ 4.97 million from Genesis Global Capital at an interest rate of 2%. Following refinancing, the amount of BTC secured loans secured increased to 94% or 2,823 BTC of the company's Bitcoin wallet. That compares to 58% or 1,700 bitcoins in the first quarter of 2019.

Hut 8 pointed out that the recent third half of Bitcoin will present significant challenges for miners. Interim CEO Jimmy Vaiopoulos told analysts on a profit call that the company may be forced to close parts of its operations due to the halving, which has cut rewards in half mining at 6.25. BTC

.

Certainly, without a corresponding increase in the price of bitcoin, the revenues of Hut 8 will be negatively affected. If the price of bitcoin and the hash of the network remain stable, the corresponding revenues of Hut 8 will be halved later. halving, "the company said in a statement.

"Management is actively looking for ways to mitigate these industry-specific factors," he added, as the miner sought to upgrade his mining machines to more effective.

Hut 8 shares fell 2.3% to $ 0.90 in Toronto today. In the past 52 weeks, the stock has traded between $ 0.36 and $ 2.09.

Hut 8 operates two bitcoin mining sites in Alberta, Canada, using 94 AC Block Box data centers with a current maximum operating capacity of 952 PH / s.

What do you think about the gains from Hut 8? Let us know in the comment section below.

Image credits: Shutterstock, Pixabay, Wiki Commons