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Miner Hut 8 Reports Q2 Revenue Plunged 67% to $6.9 Million Due to Bitcoin Halving

Miner Hut 8 Reports Q2 Revenue Plunged 67% to $6.9 Million Due to Bitcoin Halving

Canadian miner Hut 8 Mining Corp has reported that second quarter income tumbled 67% to $6.9 million from $21.2 million a 12 months in the past, as Bitcoin’s provide lower in May compelled manufacturing to say no.

The Toronto Stock Exchange-listed firm extracted simply 795 bitcoin (BTC) within the April to June quarter, in comparison with 1,165 BTC within the previous three-month interval.

However, Hut Eight posted a web revenue of $2.1 million due to the revaluation of its bitcoin holdings, which generated $7.6 million.

Still, Q2 web earnings present a decline of 91% from the $22.7 million reported a 12 months earlier. The agency mentioned revenue from mining actions got here in at $440,000, down from $13.Four million the 12 months earlier than.

Altogether, Hut Eight ended the evaluate quarter with 2,954 BTC on its steadiness sheet.

Management blamed the decline in earnings to the Bitcoin third halving occasion of May 11, which slashed miner rewards by 50% to six.25 BTC per block.

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“The community issue decreased subsequent to the halving by 15%, however shortly returned again to ranges previous to the halving,” mentioned the corporate, in its earnings launch on August 13.

“This posed a tough problem to many bitcoin miners as they noticed the bitcoin block reward drop by 50% with related community issue charges that means that income dropped by almost 50% for all bitcoin miners, together with Hut 8,” it added.

During the quarter, Hut Eight raised $6.2 million from a share sale. The funds have been used to purchase new mining {hardware}, which is predicted so as to add 275 petahash per second to the corporate’s present mining capability.

Shares of Hut Eight rose 4.4% to $0.89 in Toronto buying and selling Friday. Over the previous 52 weeks, the inventory has reached a low of $0.38 and a excessive of $1.98.

What do you suppose and Hut 8’s second quarter earnings? Let us know within the feedback part under.

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The submit Miner Hut 8 Reports Q2 Revenue Plunged 67% to $6.9 Million Due to Bitcoin Halving appeared first on Bitcoin News.

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