Hut 8 Reports 66% Jump in Crypto Mining Revenue for 2019

The company significantly expanded its operations last year.

Hut 8 Mining Corp, a publically listed crypto mining company, published its annual financials on Friday, showing total revenue of CAD 82 million ($58 million) – 66 percent jump from the previous year’s number.

Per the press release, the jump in the figures is primarily due to two major operational expansions – one is the launch of the company’s flagship facility in Medicine Hat, which became operational in mid-2018, and the second is the addition of 12 BlockBoxes which became operational in early 2019.

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This, however, increased the operational cost of the company significantly, resulting in a mining profit margin of 45 percent, compared to the 50 percent profit margin a year before.

The Canadian company also reported CAD 33.5 million (almost $23.7 million) in adjusted EBITDA – an increase of 73 percent from the previous year’s CAD 19.3 million (around $13.65).

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The results also revealed a total gain of CAD 4.3 million ($3.04 million) for last year, while for the previous year, the company reported a loss of CAD 17.9 million (around $12.66 million).

Impressive figures for the year

“2019 was a milestone year for Hut 8 as we achieved bottom line profitability which allowed for growth in operating capacity and paying down debt,” Jimmy Vaiopoulos, chief financial officer at Hut 8, said. “We are proud to have had a successful first full year as a public company while also graduating to the TSX via the TSX Sandbox.”

In total, the company now owns and operates two sites in Canada, including 94 BlockBox AC data centers with a current maximum operating capacity of 107 MW and 952 PH/s.

Last November, the company also purchased nine Blockbox AC data centers from the Bitfury Group, costing $7 million. With this, the company is expecting to run its full operations at approximately 963 PH/s and 109.4 MW.

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