Hut 8, one of the world’s largest and innovation-focused digital asset miners and high-performance computer builders, recently published financial results. The latter led them to report a crushing net loss of $134.3 million. The company says these losses are a direct result of operational downtime and the recent Bitcoin halving event. Despite the hefty losses, Hut 8 is making strategic moves to prioritize American Bitcoin in an effort to eliminate redundancy and position for growth down the line.
Today Hut 8 operates or is building out 19 data center sites. In mid-September 2024, the company deployed its initial HPE-Cray cluster into one of its Chicago-based data centers, housing 1,000 of the new Nvidia H100s. These initiatives highlight Hut 8’s continued growth into high-performance computing services, such as its GPU-as-a-Service through the Highrise brand.
The firm had $21.8 million revenues and $117.7 million earnings before interest, tax, depreciation and amortization. The upcoming Bitcoin halving in 2024 played a major role in Hut 8’s financial results. This event reduced the amount of new Bitcoins awarded to a miner by 50 percent.
"The launch of American Bitcoin marks a pivotal shift in our platform trajectory, accelerating our transition to power and digital infrastructure. The business is purpose-built to accumulate Bitcoin at scale with exceptional speed, capital efficiency, and operational leverage." - Asher Janoot, CEO of Hut 8
Hut 8’s strategic focus on American Bitcoin ensures efficiencies in operation. Through this approach, it hopes to get hardware costs off its balance sheet. With the addition of 15 more EHps at its Vega site in the Texas panhandle, the company has the capacity to purchase that many additional EHps. By the end of 2025, it hopes to be able to manage an aggregate of 50 EHps.
"Our retained ownership in American Bitcoin preserves exposure to Bitcoin without the balance sheet burden of further parent-level investments in mining hardware." - Asher Janoot, CEO of Hut 8
While this is going on, Hut 8 has been busy building out infrastructure and capabilities. Last year, the company bought five colocation data centers in Canada from TeraGo. This year, Hut 8 took that diversification a step further by announcing its merger with US Bitcoin. This merger gave Hut 8 even more clout in the North American market. The company successfully upgraded its ASIC fleet, fostering significant year-over-year growth in the company’s hashrate. This upgrade brought a huge 37 percent jump in efficiency from one quarter to the next.
