Canadian Bitcoin Mining Company Hut 8's Second-Quarter Revenue Slumps 28%

According to BlockBeats, Canadian Bitcoin miner Hut 8 announced its second quarter 2020 earnings, with a sharp drop in revenue. The appreciation of the Bitcoin held by the company helped Hut 8 achieve profitability this quarter. Last quarter, the listed company mined a total of 795 Bitcoins (BTC), a 29% drop from 1,116 Bitcoins in the previous quarter. As a result, the company's revenue fell 28% to 9.2 million Canadian dollars (7 million US dollars).

Management primarily attributed this to the Bitcoin halving that occurred on May 11, “network difficulty dropped by 15% after the halving, but quickly returned to pre-halving levels.” This was a difficult challenge for many Bitcoin miners, as they saw a 50% drop in Bitcoin block rewards while the network difficulty rate remained the same, meaning revenue for all Bitcoin miners dropped by nearly 50%, including Hut 8.

Despite a total loss of $6.4 million in the second quarter, Hut 8 reported a net profit of $2.8 million — thanks to the recovery in Bitcoin prices. At the end of the second quarter of 2020, Hut 8 had 2,954 Bitcoins on its balance sheet. The company also noted that it successfully raised $8.3 million in gross proceeds in its public offering, which closed near the end of the quarter. According to management, the additional funds have been used to upgrade existing mining equipment.

BlockBeats reminds that according to the document "Risk Warning on Preventing Illegal Fund Raising in the Name of "Virtual Currency" and "Blockchain"" issued by the China Banking and Insurance Regulatory Commission and other five departments in August 2018, the general public is requested to look at blockchain rationally, not blindly believe in the exaggerated promises, establish correct monetary concepts and investment ideas, and effectively enhance risk awareness; any clues of illegal and criminal activities discovered can be actively reported to the relevant departments.