<p>Hut 8
Mining Corp., one of North America’s largest publicly-listed mining companies,
recently announced its financial results for the year and quarter that ended 31
December 2022. Despite the challenging times that the digital asset mining
industry experienced, Hut 8 managed to maintain stable revenues. However, the
total net loss widened significantly to CAD 242.81 million, showing how
cryptocurrency winter made crypto miners’ life miserable in 2022.</p><p>Hut 8 Doubles Net Loss in
2022</p><p>Hut 8 revenue
decreased by CAD 23.1 million to CAD 150.7 million during the year ended 31
December 2022, compared to CAD 173.8 million reported a year earlier. However,
the company mined 3,568 <a href=”https://www.financemagnates.com/terms/b/bitcoin/” class=”terms__main-term” id=”261088a9-0f41-4202-a73c-31f75ba6bd93″ target=”_blank”>Bitcoin</a> (BTC) in 2022, which was a 28.1% increase
compared to 2021 due to the rise in hashrate from the expansion of the company’s
fleet of miners and mining activities. Hut 8 installed an aggregate of 21,455
new MicroBT miners at its three mining sites during a period of twelve reported
months.</p><p>However,
the increasing number of Bitcoin mined and the relatively small decrease in
revenue did not translate positively into a net result. The company was already
reporting a net loss of CAD 72.7 million in 2021, and the value has more than
doubled to CAD 242.8 million ($176 million). Net loss per share came in at CAD
1.29 compared to CAD 0.54 reported in the same period a year earlier.</p><p>According
to Hut 8, the decrease in Bitcoin price during 2022 resulted in a net loss of CAD
134.8 million. This was due to a combination of factors, including lower
revenue from digital asset mining operations, higher cost of revenue, and CAD 113.9
million of impairment on digital asset mining CGUs and GPU mining group of
assets.</p><p>Despite the
poor results, the company’s CEO, Jaime Leverton, is optimistic about the future
and thanks the team for their commitment to building a diversified business to
deliver future revenue growth.</p><p>”As we
look ahead, we will continue to uphold these operating principles as we work to
close our business combination with USBTC and begin operating as a
US-domiciled, digital asset mining, hosting, managed infrastructure operations,
and high performance computing organization,” Leverton added.</p><p>Troubled Bitcoin Miners
Feel the Crypto Winter</p><p>Although
the first gusts of warmer March winds and the coming spring can be felt outside
the windows, winter in the crypto market does not seem to be melting. Before
Hut 8, several other BTC miners and mining-related companies had already
published their results for the fourth quarter and full year of 2022, which also showed
abysmal results.</p><p>Canaan Inc.
(NASDAQ:CAN), a cryptocurrency mining hardware manufacturer, <a href=”https://www.financemagnates.com/cryptocurrency/canaan-reports-82-lower-revenue-in-tough-q4-2022/” target=”_blank” rel=”follow”>reported the
fourth quarter revenues at $56.8 million</a>, translating to 59.9% quarterly and
82.1% yearly decreases. As a result, Canaan reported a significant decrease in the
gross profit for the entire year of 2022, to $253.4 million from $411.2 million
reported in 2021.</p><p>HIVE
Blockchain Technologies Ltd. (TSX:HIVE), another publicly-listed <a href=”https://www.financemagnates.com/terms/c/crypto-mining/” class=”terms__secondary-term” id=”b7de0d78-81b9-460d-b33d-311d7d0dff0e” target=”_blank”>crypto mining</a>
company, <a href=”https://www.financemagnates.com/cryptocurrency/hive-blockchain-reports-90m-loss-in-q4-2022-amid-lower-bitcoin-prices/” target=”_blank” rel=”follow”>lost $90 million in the fourth quarter</a> compared to the $37 million
loss reported in the third quarter of the calendar year 2022.</p><p>Northern
Data (XETR:NB2), a publicly-listed provider of High-Performance Computing (HPC)
solutions from Germany, <a href=”https://www.financemagnates.com/cryptocurrency/btc-miner-northern-data-increases-its-crypto-production-by-315-in-2022/” target=”_blank” rel=”follow”>published its own BTC production report</a> showing a 315%
boost in crypto production during 2022. The company was able to mine 2,798
tokens and forecasted an annual revenue in the range of EUR 190-194 million. Although
the increase is significant, it is still lower than the result for 2021 in
revenue expressed in traditional currency.</p><p>According
to Glassnode data, mining revenues reached a record-breaking $15.3 billion in
2021 and were significantly reduced in 2022 <a href=”https://www.financemagnates.com/cryptocurrency/why-bitcoin-miners-made-6-billion-less-in-2022/” target=”_blank” rel=”follow”>by $6 billion</a>.</p>
This article was written by Damian Chmiel at www.financemagnates.com.
