Back Jun 30, 2019 - Press release

Hut 8 Mining Corp. Reports Record Financial Results for the Second Quarter of 2019

TORONTO, ON, August 19, 2019 – Hut 8 Mining Corp. (“Hut 8” or “the Company”) (TSXV: HUT) (OTCQX: HUTMF), one of the world’s largest public bitcoin mining companies by operating capacity and market capitalization, announces its financial results for the second quarter ended June 30, 2019. Hut 8 reports all amounts in Canadian Dollars unless otherwise stated.

Q2-2019 Highlights:

  • Record quarterly revenue of $28.3 million and Adjusted EBITDA of $17.3 million.
  • Record quarterly bitcoin mined of 2,816.
  • Record earnings per share of $0.43 for the second quarter.
  • Gain of $22.4 million on re-measurement of bitcoin inventory, larger than losses on re-measurement for all of 2018.
  • Decrease in cash expenses, excluding share-based compensation, to $637k from $747k in Q1-2019 and $994k in Q4-2018.
  • Decrease in production Cost per Bitcoin to US$2,757 compared to US$3,950 in Q1-2019 and US$3,995 in Q4-2018.
  • Adjusted Working Capital on June 30, 2019 of $38.2 million.

“Q2-2019 represents Hut 8’s best quarter on all metrics since inception. We reduced our cost of mining to US$2,757 while the price of bitcoin appreciated from US$4,158 at the beginning of the quarter to US$10,817 at the end of the quarter.” said Andrew Kiguel, Chief Executive Officer of Hut 8. “In addition, management has reduced corporate overhead quarter over quarter. Our cost reduction initiatives put in place during crypto-winter came to fruition during the second quarter to produce exceptional earnings per share of $0.43 for shareholders. In addition, our strategy of retaining bitcoin resulted in a gain of $22.4 million re-measurement of our bitcoin inventory.  If Hut 8 had sold its entire bitcoin inventory at the end of Q1-2019, we would not have had the benefit of the appreciation in the price of bitcoin during Q2-2019.”

For Q2-2019, fair value gain on re-measurement of digital assets of $22.4 million represented the gain on adjusting the value of the digital assets held in inventory to the market value on the reporting date. This was the biggest gain on re-measurement of digital assets in Hut 8’s history. In future quarters, the Company would expect to see gains or losses based on the price of bitcoin on the reporting date, relative to the price on the day mined, when revenue is recorded.

Hut 8 recognized $17.3 million in Adjusted EBITDA. Net income of $33.7 million or $0.43 per share was recorded for the quarter.

“Hut 8 remains committed to solely mining bitcoin and retaining an inventory of bitcoin for appreciation.   Management underwent significant cost saving measures at the end of 2018 to ensure we maintain a lean cost structure. The strategy led to improved margins and the ability to leverage the appreciation in the price of bitcoin. Our operations are stronger than ever, and we are poised for improved financial performance going forward,” said Kiguel.

A conference call has been scheduled to discuss the Company’s second quarter 2019 financial results, hosted by Andrew Kiguel, Chief Executive Officer, and Jimmy Vaiopoulos, Chief Financial Officer with further details below:

Date:                Monday, August 19, 2019
Time:                10:00 a.m. ET
Dial-In:             1 (888) 465-5079, Canada / 1 (888) 424-8151, USA
Passcode:         8540 288#

This earnings release should be read in conjunction with the Company’s Management Discussion & Analysis, Financial Statements and Notes to the Financial Statements for Q2-2019, which has been posted under the Company’s profile on SEDAR at and are also available on the Company’s website at

Since beginning its mining operations in December 2017, Hut 8 has mined over 10,800 bitcoins. Hut 8’s current capital structure consists of 90,438,009 common shares outstanding, 2,882,222 warrants and 965,000 options. In total, Hut 8 owns and operates two sites in Alberta, Canada utilizing 85 BlockBox AC data centers with current operating capacity of 95.2 MW and 805 PH/s.



Hut 8 is a cryptocurrency mining company with industrial scale bitcoin mining operations in Canada. Hut 8 has an exclusive North American partnership with the Bitfury Group Limited, inclusive of Bitfury Holding BV, (“Bitfury”), one of the world’s leading full-service hardware and software blockchain technology companies.

Hut 8 provides investors with direct exposure to bitcoin, without the technical complexity or constraints of purchasing the underlying cryptocurrency. Investors avoid the need to create online wallets, wire money offshore, and safely store their bitcoin.

Key investment highlights and FAQ’s:

Keep up-to-date on Hut 8 events and developments and join our online communities at FacebookTwitterInstagram and LinkedIn.


Hut 8 Corporate Contact:

Andrew Kiguel
Chief Executive Officer
Tel: (647) 256-1992

Jimmy Vaiopoulos
Chief Financial Officer
Tel: (647) 256-1992



Certain information in this press release constitutes forward-looking information. In some cases, but not necessarily in all cases, forward-looking information can be identified by the use of forward-looking terminology, such as “plans”, “targets”, “expects” or “does not expect”, “is expected”, “estimates”, “intends”, “assumes”, “anticipates” or “does not anticipate” or “believes”, or variations of such words and phrases, or state that certain actions, events or results “may”, “could”, “would”, “might”, “will” or “will be taken”, “occur” or “be achieved”. In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances contain forward-looking information. Statements containing forward-looking information are not historical facts, but instead represent management’s expectations, estimates and projections regarding future events.

Forward-looking information is necessarily based on a number of opinions, assumptions and estimates that, while considered reasonable by Hut 8 as of the date of this press release, are subject to known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information, including but not limited to the factors described in greater detail in the “Risk Factors” section of the Filing Statement dated March 1, 2018 relating to the Qualifying Transaction of Oriana Resources Corporation and Hut 8, which is available at These factors are not intended to represent a complete list of the factors that could affect Hut 8; however, these factors should be considered carefully. There can be no assurance that such estimates and assumptions will prove to be correct. The forward-looking statements contained in this press release are made as of the date of this press release, and Hut 8 expressly disclaims any obligation to update or alter statements containing any forward-looking information, or the factors or assumptions underlying them, whether as a result of new information, future events or otherwise, except as required by law.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.


This MD&A presents certain non-GAAP (“GAAP” refers to Generally Accepted Accounting Principles) financial measures to assist readers in understanding the Company’s performance. These non-GAAP measures do not have any standardized meaning and therefore are unlikely to be comparable to similar measures presented by other issuers and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP. Management uses these non-GAAP measures to supplement the analysis and evaluation of operating performance.

Throughout this MD&A, the following terms are used, which are not found in the Chartered Professional Accountants of Canada Handbook and do not have a standardized meaning under GAAP.

EBITDA (Earnings before Interest, Taxes, Depreciation, and Amortization)

  • “EBITDA” represents net income or loss excluding net finance income or expense, income tax or recovery, depreciation, and amortization.
  • “Adjusted EBITDA” represents EBITDA adjusted to exclude share-based compensation, fair value loss or gain on re-measurement of digital assets, write-offs, and costs associated with one-time transactions (such as listing fees).
  • “Adjusted EBITDA margin” represents Adjusted EBITDA as a percentage of revenue.

“Mining Profit” represents gross profit (revenue less cost of revenue), excluding depreciation. “Mining Profit Margin” represents Mining Profit as a percentage of revenue.

“Cost per Bitcoin” represents cost of revenue excluding depreciation, divided by the number of bitcoin mined in the period.

“Adjusted Working Capital” represents current assets including digital assets, less current liabilities. The Adjusted Working Capital is not a substitute for the conventional working capital but instead shows the short term liquidity of the company including the available digital assets at the period end.

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