Bitcoin Miner Hut 8 misses forecasts, but increases by 20 %

Bitcoin Miner Hut 8 misses forecasts, but increases by 20 %

The Canadian crypto-miner hat 8 recorded a lower than expected sales in the second quarter and increased its stock by more than 20 %after opening the market on Thursday.

HUT 8 reported a turnover of $ 34.3 million in the second quarter and thus remained behind the expectations of the analysts of $ 38.75 million. The income rose by about $ 8 million compared to the first quarter of 2022.

The company owes outstanding loans of $ 23.5 million, a trend that other min operators have imitated in the past few months.

During the market depressions-driven by the decline of the stable coin terra VAT and the subsequent implosion of crypto loans such as Celsius, Blockfi and Voyager-mining operators either looked faced with selling Bitcoin near his low or more and more expensive credit lines to make ends meet.

The sales jump was primarily due to the crypto mining operations of HUT 8, the company shared in its profits with Report . HUT 8 has broken down 946 bitcoins in the second quarter, compared to 553 bitcoins in the first three months of 2022. An increased hash rate-a measure of computing power for crypto mining-and expanded mining institutions enabled the company to increase its production anyway, according to CEO Jaime Leverton .

"In view of the generally challenging capital market environment and the continuing volatility, which affects the area of digital assets, we remain committed to balance sheet management," said Shane Downey, Chief Financial Officer from Hut 8, at the conference call.

"It is really difficult for me to see where growth needs will arise in the next six to twelve months if we are in really unique market conditions," said Leverton.

The stocks were traded by $ 3.27 on Thursday morning, which corresponds to a rally of about 21 % before noon. To date, the share has lost around 58 % - one of many public crypto companies that were surprised by the turbulent market conditions.

The company withdrew its forecast for sales growth from its result report for the first quarter.

"I would like to emphasize that we believe that these rationalizations were prudent to position ourselves well in order to realize profitable sales growth in 2023," said Downey.

In accordance with its "long -term" balance sheet management strategy, the company has no longer sold Bitcoin since the beginning of 2021, said Downey. The company has 7,406 bitcoins in its reserves, he added.

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