Canadian Hut 8 Mining mines 942 BTC in the quarter and boosts hash rate by 27%

In the first quarter of 2022, the Canadian mining company Hut 8 Mining generated revenues of 53.3 million CAD (~$40.9 million). The 942 BTC mined during the period contributed 49.3 million CAD (~$37.8 million) to the total.

Q1 Highlights:

— revenue $53.3 million
— 9,592 new miners up and running; BTC holdings up 17%
— Adjusted EBITDA $27.1 million
— recurring revenue in new HPC business projected to increase 15-18% with margins 35-40%

Read more 👉 https://t.co/1qQJnK8UsW

— Hut 8 Mining (@Hut8Mining) May 12, 2022

In addition to mining operations, Hut 8 earned revenue in January-March from hosting services (about $0.6 million) and high-performance computing services (about $2.5 million).

Total company revenues for the quarter rose 67% year over year.

The company deployed 9,592 new MicroBT miners (Whatsminer M30S, M30S+ and M31S+) at the Drumheller and Medicine Hat facilities in Alberta. This lifted its own hash rate to 2.54 EH/s as of March 31, up 27% since the start of the year.

Check out our new Whatsminers in Drumheller, Alberta working hard this past weekend 💪 pic.twitter.com/0F5Dtid3k4

— Hut 8 Mining (@Hut8Mining) May 9, 2022

“Our mining operations, largely thanks to the deployment of nearly 9,600 new MicroBT miners, have delivered strong results in the first quarter, and we are confident we have a solid foundation for the long term,” said Hut 8’s chief financial officer Shane Downey.

The company noted that in the first quarter of 2021, the cost to mine 1 BTC was around $25,900, while in the reported period it was around $18,000. The reduction was achieved by shifting to a more efficient equipment fleet, Hut 8 said.

Compared with the previous quarter, hosting revenue nearly halved (to about $1.07 million), Hut 8 said, explaining that it had repurposed equipment from several clients for independent mining.

In April the firm continued this policy and signed an acquisition of 960 Whatsminer M31S+ miners from TAAL, installed at the Medicine Hat data centre.

According to the press release, Hut 8 entered the high-performance computing business during the quarter. The division’s financial results were described as strong by the company. It expects to raise the share of revenue from this direction to 35-40% in the future.

For 2021, Hut 8 mined a total of 2786 BTC, increasing revenue by 327%.