Canadian Bitcoin Miner Hut 8 Reports Q3 Loss of $8.7 Million
Hut 8 Mining Corp., a Canadian bitcoin mining company, has released its third quarter earnings report, which shows a net loss of US $8.7 million on higher depreciation costs. Depreciation spiked to $13.3 million, wiping out mining profit which came to $6.7 million.
Revenue Soars but Profits Fall
During the third quarter of 2018, the Toronto-listed miner extracted 1,978 BTC at a cost of $3,394 per coin, almost half the average market price of bitcoin for the three months, which averaged $6,400. Hut 8 said this difference explains the profit on mining, at margins of about 51 percent. Overall, the company mined 3,581 BTC for the nine months to Sept. 30, and 4,200 BTC since operations began in December 2017.
According to the earnings release published Nov. 8, Hut 8 reported revenue increase of 126 percent to $13.4 million from $5.9 million the previous quarter due to increased operational…
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