Disappointing Q2 earnings send shares of Bitcoin Miner Hut 8 plummeting

August 15, 2023 05:27 AM AEST | By Invezz

Disappointing Q2 earnings send shares of Bitcoin Miner Hut 8 plummeting — Image source: Invezz

Increased Bitcoin difficulty

According to the Bitcoin miner, the decline in mined Bitcoin was mostly caused by problems with particular mining operations and an increase in the Bitcoin network’s difficulty between each session. The company also recently vacated its North Bay facility with 7,000 mining machines back in March, halting 680 petahashes per second (PH/s) of mining capacity, due to a legal dispute with its power supplier.

At the company’s Drumheller facility, however, “high energy input levels” and “equipment failures” in addition to high energy rates in May prompted it to curtail operations to just 20% of on-site capacity. The company has also added “custom firmware” to all of its mining equipment to make sure that its fleet “operates within safe limits.”

There is also the impact of Ethereum shifting to proof of stake in September last year, which reduced the amount of money the company received from cryptocurrency mining operations. The firm was forced to halt its GPU-related mining activities.

Despite the many challenges, however, the company’s CFO Sherif Visram stated that the company was successful in strategically managing its costs.

As of June 30, Hut 8’s total self-mined Bitcoin balance held in custody or as collateral was 9,136 BTC (worth about $368.7 million).

The post Disappointing Q2 earnings send shares of Bitcoin Miner Hut 8 plummeting appeared first on Invezz.

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