Shares of Toronto-based Bitcoin Mining firm Hut 8 (TSX: HUT) fell 8% on Monday shortly after posting underwhelming Q2 earnings figures.
The firm said it mined 399 BTC during the quarter ending June 30—down 58% compared to the same period last year. This led to a $24.6 million revenue drop from $43.8 million in Q2 2022 to $19.2 million in Q2 2023.
According to Hut, the drop was primarily due to increased Bitcoin network difficulty between each period, and issues related to specific mining facilities. The firm vacated its North Bay facility of 7,000 mining machines back in March amid a legal dispute with its power supplier, suspending 680 petahashes per second (PH/s) of mining capacity.
Meanwhile, “high energy input levels” and “equipment failures” alongside high energy rates at the company’s Drumheller facility in May moved it to reduce operations to just 20% of on-site capacity. Hut has since implemented “custom…
