TORONTO, ON, November 7, 2019 – Hut 8 Mining Corp. (“Hut 8” or “the Company”) (TSX: HUT) (OTCQX: HUTMF), one of the world’s largest public cryptocurrency mining companies by operating capacity and market capitalization, announces its financial results for the three and nine months ended September 30, 2019. Hut 8 reports all amounts in Canadian Dollars unless otherwise stated.
Q3-2019 Highlights:Revenue of $26.7 million; Mining Profit Margin of 58%, and Adjusted EBITDA of $14.7 million. Mined 1,965 bitcoin at a Cost per Bitcoin of US$4,363 inclusive of electricity costs, mining pool fees, and all other production costs. Strengthened balance sheet through the reduction of debt by $3.6 million and reduced accounts payable by more than $6 million from the prior quarter. Increased Retained Bitcoin inventory by 7.6% from the prior quarter to 3,496 bitcoin. Announced petahash capacity increases of 19.6%. Approval for trading on the Toronto Stock Exchange.
Selected Annual Financial Information
Hut 8 is pleased to report revenue of $26.7 million and a Mining Profit Margin of 58%. The Company faced industry headwinds during the quarter as the bitcoin price dropped by 30% and the network difficulty rate increased by 61%, which both negatively affected Mining Profit Margins.
Utilizing its cash and bitcoin reserves, Hut 8 strengthened its balance sheet by repaying US$2.0 million of its debt to Galaxy Digital Lending in September 2019 and US$2.3 million of its debt to Bitfury for the nine months ended September 30, 2019, including US$750k paid in Q3-2019. In addition, Hut 8 reduced its accounts payable outstanding by over $6.0 million since June 30, 2019. This has led to the increase of Hut 8’s working capital surplus to $5.4 million as at September 30, 2019, which does not include non-current digital assets of $28.6 million. This was a drastic improvement from the working capital deficit as at December 31, 2018 of $18.3 mi...