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Canada Based Bitcoin Mining Firm Hut 8 Sees Record High Revenue

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Canada based Bitcoin mining firm Hut 8 has reported its highest revenue in the third quarter of this year. This was published on Nov.8 2018 in the company’s quarterly financial report.

The construction of its newest mining facility was completed in July. It is located in the small Canadian city of Medicine Hat. In total, 24 “BlockBox” data-centers were set up and the operation was completed two months ahead of its scheduled launch in September 2018.

The new installation brought the total number of Blockbox data-centres to 40 in Medicine Hat and 17 in the nearby city of Drumheller. Bitfury deployed 16 more Blockbox data-canters to the city of Medicine Hat bringing the total to a staggering 56. This increased the revenue of Hut 8 by 126 percent in this quarter bringing it to $13.5 Million. The total revenue in the previous quarter was $5.9 Million. Each BlockBox contains 176 mining servers. According to reports, it also has a hashrate of 13.7 Pethashes per second (Ph/s).

Even before the Blockbox sent by BitFury, 66.7 MW of energy of “fully-funded operating power” would output a staggering 487.5 petahashes per second.

Andrew Kiguel, President, and CEO of Hut 8 had stated:

“With 66.7 MW of aggregate operating capacity, we believe we are the largest cryptocurrency miner in Canada and the largest publicly-traded cryptocurrency miner by operating capacity in the world”

The company’s claim of being the largest public crypto mining company by operating capacity and market capitalization seems true. It has also revealed that the company’s revenue for the nine months ending on September 30 has been $27.7 million.

Because of low electricity costs in Canada, Hut 8’s cost for mining a single Bitcoin in Q3 was $3,394. This is much lower than the current market price of $6400 bringing the company’s mining for Q3 to $6.6 million. Here, the profit margin is 51 percent. The company claims that it is one of the lowest-cost BTC mining companies in the world.

In Q3, the BTC price appreciated significantly and competition from other BTC miners also increased. Also, the temperature was at its peak in Alberta during this time. This resulted in increased electricity costs at Hut 8’s Drumheller facility. Because of all these reasons Hut 8’s mining profit margin and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) was lower during the quarter.

The company expects an improvement in performance the next quarter. The reason for this is that in colder months, the efficiency of Application-Specific Integrated Circuit (ASIC) chips used to mine cryptocurrencies will rise.

In spite of the fact that Bitcoin prices fell by nearly 70% since the start of the year, and mining profits fell even further, Hut 8 has still managed to procure nearly 1,900 Bitcoin since the launch of the firm in December. At current market values, Hut 8’s Bitcoin stash totals to a value of over $12.1 million U.S. dollars.

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