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Hut 8 Reports Third Quarter 2024 Results

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Hut 8 reported Q3 2024 financial results with revenue of $43.7 million, net income of $0.9 million, and Adjusted EBITDA of $5.6 million. The company mined 234 Bitcoin at a weighted average revenue of $61,025 per Bitcoin, compared to a mining cost of $31,482. Key developments include a partnership with BITMAIN for ~15 EH/s colocation, launch of GPU-as-a-Service business, and an ASIC fleet upgrade expected to improve efficiency by 37%. The company holds 9,106 Bitcoin valued at $576.5 million and $72.9 million in cash as of September 30, 2024.

Hut 8 ha riportato i risultati finanziari del terzo trimestre 2024 con un fatturato di 43,7 milioni di dollari, un utile netto di 0,9 milioni di dollari e un EBITDA rettificato di 5,6 milioni di dollari. L'azienda ha estratto 234 Bitcoin a un fatturato medio ponderato di 61.025 dollari per Bitcoin, rispetto a un costo di estrazione di 31.482 dollari. Tra gli sviluppi chiave spiccano una partnership con BITMAIN per circa 15 EH/s in co-locazione, il lancio del servizio GPU-as-a-Service e un aggiornamento della flotta ASIC previsto per migliorare l'efficienza del 37%. L'azienda detiene 9.106 Bitcoin valutati 576,5 milioni di dollari e 72,9 milioni di dollari in contante al 30 settembre 2024.

Hut 8 informó sobre los resultados financieros del tercer trimestre de 2024, con ingresos de 43,7 millones de dólares, ingresos netos de 0,9 millones de dólares y un EBITDA ajustado de 5,6 millones de dólares. La compañía minó 234 Bitcoin a un ingreso promedio ponderado de 61.025 dólares por Bitcoin, en comparación con un costo de minería de 31.482 dólares. Los desarrollos clave incluyen una asociación con BITMAIN para aproximadamente 15 EH/s en colocation, el lanzamiento del negocio de GPU-as-a-Service y una actualización de la flota ASIC que se espera mejore la eficiencia en un 37%. La compañía posee 9.106 Bitcoin valorados en 576,5 millones de dólares y 72,9 millones de dólares en efectivo al 30 de septiembre de 2024.

Hut 8은 2024년 3분기 재무 결과를 보고하며 4,370만 달러의 수익, 90만 달러의 순이익, 560만 달러의 조정 EBITDA를 기록했습니다. 회사는 1비트코인당 61,025달러의 가중 평균 수익으로 234비트코인을 채굴했으며, 채굴 비용은 31,482달러였습니다. 주요 개발 사항으로 BITMAIN과의 약 15 EH/s 공동 위치 협력, GPU-as-a-Service 사업 출시, 그리고 효율성을 37% 향상시킬 것으로 기대되는 ASIC 플릿 업그레이드가 있습니다. 회사는 2024년 9월 30일 기준으로 9,106 비트코인을 보유하고 있으며, 이는 5억 7,650만 달러에 해당하고 7,290만 달러의 현금을 보유하고 있습니다.

Hut 8 a publié ses résultats financiers du troisième trimestre 2024 avec un chiffre d'affaires de 43,7 millions de dollars, un bénéfice net de 0,9 million de dollars et un EBITDA ajusté de 5,6 millions de dollars. L'entreprise a extrait 234 Bitcoin avec un revenu moyen pondéré de 61.025 dollars par Bitcoin, par rapport à un coût d'extraction de 31.482 dollars. Parmi les développements clés figurent un partenariat avec BITMAIN pour environ 15 EH/s de colocation, le lancement d'une activité GPU-as-a-Service et une mise à niveau de la flotte ASIC qui devrait améliorer l'efficacité de 37%. L'entreprise détient 9.106 Bitcoin d'une valeur de 576,5 millions de dollars et 72,9 millions de dollars en espèces au 30 septembre 2024.

Hut 8 berichtete über die finanziellen Ergebnisse des dritten Quartals 2024 mit Umsätzen von 43,7 Millionen US-Dollar, netto Einkommen von 0,9 Millionen US-Dollar und einem bereinigten EBITDA von 5,6 Millionen US-Dollar. Das Unternehmen hat 234 Bitcoin mit einem gewogenen durchschnittlichen Umsatz von 61.025 US-Dollar pro Bitcoin abgebaut, verglichen mit einem Mining-Kosten von 31.482 US-Dollar. Zu den wichtigsten Entwicklungen gehören eine Partnerschaft mit BITMAIN für ca. 15 EH/s Co-Location, die Einführung des Geschäftsbereichs GPU-as-a-Service und ein Upgrade der ASIC-Flotte, das voraussichtlich die Effizienz um 37% verbessern wird. Das Unternehmen hält 9.106 Bitcoin im Wert von 576,5 Millionen US-Dollar und 72,9 Millionen US-Dollar in bar zum 30. September 2024.

Positive
  • Revenue increased to $43.7M from $21.7M in prior year period
  • Net income of $0.9M compared to $4.4M loss in prior year
  • Energy cost decreased 33% to $28.83 per MWh from $42.73
  • Bitcoin mining cost efficiency with $61,025 revenue vs $31,482 cost per Bitcoin
  • Significant Bitcoin reserves of 9,106 BTC valued at $576.5M
  • Strong cash position of $72.9M
  • $17M reduction in interest expenses over three years through loan conversion
Negative
  • Bitcoin production decreased to 234 from 675 in prior year period
  • Operating expenses increased with G&A rising to $16.2M from $4.2M
  • Adjusted EBITDA declined to $5.6M from $11.4M in prior year

Insights

The Q3 results show mixed performance with notable strategic developments. Revenue of $43.7 million represents solid growth, though Adjusted EBITDA of $5.6 million declined year-over-year. The company's improved energy costs at $28.83/MWh (down 33%) demonstrate operational efficiency gains.

Key positives include the $37.9 million debt conversion with Anchorage, saving $17 million in interest over 3 years and the BITMAIN partnership projected to generate $135 million in annual colocation revenue. The planned ASIC upgrade could boost hashrate by 66% to 9.3 EH/s while improving efficiency by 37%.

The balance sheet remains strong with $72.9 million cash and 9,106 Bitcoin valued at $576.5 million. The development pipeline of 5 gigawatts, including 430MW for AI data centers, positions Hut 8 well for future growth across both crypto mining and AI infrastructure.

The strategic pivot toward diversified digital infrastructure is particularly noteworthy. The U3S21EXPH deployment represents cutting-edge innovation in mining technology, featuring direct liquid-to-chip cooling and U form factor design that bridges Tier I and III data center architectures. This hybrid approach could set new industry standards for efficiency and scalability.

The launch of GPU-as-a-Service with 1,000 NVIDIA H100 GPUs marks a significant entry into the high-growth AI compute market. The five-year agreement structure, combining fixed payments with revenue sharing, provides both stable income and upside potential. The 430MW AI data center pipeline demonstrates strong positioning in this emerging sector.

Strategic initiatives drive revenue growth, balance sheet strength, and competitive position across AI compute and Bitcoin mining

Earnings Release Highlights

  • Revenue of $43.7 million, net income of $0.9 million, and Adjusted EBITDA of $5.6 million
  • Energy cost per MWh of $28.83, a 33% decrease from $42.73 in the prior year period
  • Mined 234 Bitcoin at a weighted average revenue per Bitcoin mined of $61,025, compared to a cost to mine of $31,482
  • 9,106 Bitcoin held in reserve with a market value of $576.5 million and total cash of $72.9 million as of September 30, 2024

MIAMI, Nov. 13, 2024 (GLOBE NEWSWIRE) -- Hut 8 Corp. (Nasdaq | TSX: HUT) (“Hut 8” or the “Company”), a leading, vertically integrated operator of large-scale energy infrastructure and one of North America’s largest Bitcoin miners, today announced its financial results for the three and nine months ended September 30, 2024.

“This quarter, we executed several strategic initiatives designed to drive topline growth and strengthen our competitive position in both AI and Bitcoin mining," said Asher Genoot, CEO of Hut 8. "Key initiatives—including a ~15 EH/s colocation partnership with BITMAIN, the go-live of our GPU-as-a-Service vertical, and the elimination of significant interest expenses through the equitization of our Anchorage Digital loan—are projected to generate nine figures in new annualized revenue and reduce interest expenses by more than $17 million over three years.”

“As of October 31, 2024, our development pipeline exceeds 5 gigawatts, with more than 1.5 gigawatts under exclusivity. Three projects from this pipeline are particularly promising for large-scale AI data center projects. Collectively, they represent over 430 megawatts of capacity, with power delivery expected to be available before the end of 2025. We are actively exploring various commercial structures for these projects across a range of customer profiles.”

“Our long-term vision is to build a digital infrastructure platform that not only meets the demands of today but is also engineered for the technologies and breakthroughs of tomorrow. Our partnership with BITMAIN to develop and launch the U3S21EXPH at our 205 MW Vega site exemplifies our dual focus on technological and commercial innovation. From the outset, it was designed with high-density racks, U form factor chips, and direct liquid-to-chip cooling, bridging Tier I and Tier III data center architecture, which we believe will unlock long-term synergies in design, procurement, and construction.”

“Lastly, we expect the initial ASIC fleet upgrade we announced last week to improve our average fleet efficiency by 37% to 19.9 J/TH and increase our self-mining hashrate by 66% to ~9.3 EH/s in the first quarter of 2025. Combined with our option to purchase an additional ~15 EH/s of hosted machines at Vega, we now have a path to reach ~24 EH/s in self-mining capacity and an average fleet efficiency of 15.7 J/TH as early as Q2 2025.”

Recent Developments and Third Quarter Highlights

  • BITMAIN Partnership: The Company announced a partnership with BITMAIN to develop and host ~15 EH/s of the U3S21EXPH, a next-generation ASIC miner, under a colocation agreement with a purchase option to add up to the entire ~15 EH/s to its self-mining hashrate by EOY 2025. The U3S21EXPH will be the first ASIC miner mass-commercialized by BITMAIN to feature direct liquid-to-chip cooling within a U form factor and is capable of achieving up to 860 TH/s at an efficiency of 13 J/TH. The U3S21EXPH is expected to be deployed at Vega in Q2 2025 and generate ~$135 million in annualized colocation revenue on a fully ramped basis.
  • ASIC Fleet Upgrade: The Company signed a purchase agreement with BITMAIN on November 6, 2024 to upgrade approximately 111 MW of self-mining capacity across its existing fleet in Q1 2025. The purchase, consisting primarily of Antminer S21+ miners, is expected to increase the Company’s self-mining hashrate by ~3.7 EH/s to ~9.3 EH/s while driving its average fleet efficiency down from 31.7 to 19.9 J/TH. The Company now has a path to ~24 EH/s of self-mining hashrate with an average fleet efficiency of 15.7 J/TH as early as Q2 2025 if it decides to execute its purchase option under the BITMAIN partnership.
  • Vega Site: The Company continued groundwork at the 205 MW Vega site, which is expected to house the ~15 EH/s colocation deployment of the BITMAIN U3S21EXPH. The Company developed a custom design for Tier I data center infrastructure inspired by traditional rack-based architecture, which will be implemented for the first time at the site. The site is on track to energize in Q2 2025.
  • Launch of GPU-as-a-Service Business: The Company launched its GPU-as-a-Service business through its wholly owned subsidiary, Highrise AI, Inc., with the delivery of its first cluster, hosted at a tier-three data center in Chicago, Illinois to an AI cloud services provider. The cluster comprises multiple Hewlett Packard Enterprise Cray supercomputers powered by 1,000 NVIDIA H100 GPUs. The Company has a five-year agreement with the AI cloud services provider that provides for fixed infrastructure payments plus revenue-sharing.
  • Anchorage Loan Conversion: The Company converted its entire $37.9 million outstanding loan balance with Anchorage to common stock at a price of $16.395 per share. The share price represents a 51% premium to the 20-day VWAP through September 26, 2024, the day prior to the signing of the Debt Repayment Agreement.

Key Performance Indicators

  Three Months Ended September 30,
     2024 2023
Cost to mine a Bitcoin (excluding hosted facilities)(1) $31,482 $15,020
Cost to mine a Bitcoin(2) $31,482 $17,274
Weighted average revenue per Bitcoin mined(3) $61,025 $28,033
Bitcoin mined(4)  234  675
Energy cost per MWh $28.83 $42.73
Hosting cost per MWh $ $60.33
Energy capacity under management (mining)(5)  967 MW  730 MW
Total energy capacity under management(6)  1,322 MW  730 MW


(1)   Cost to mine a Bitcoin (excluding hosted facilities) is equivalent to the all-in electricity cost, net of credits from participation in ancillary demand response programs, to mine a Bitcoin at owned or leased sites and includes our net share of the King Mountain JV.

(2)   Cost to mine a Bitcoin is calculated as the sum of total all-in electricity expense, net of credits from participation in ancillary demand response programs, and hosting expense divided by Bitcoin mined during the respective periods and includes our net share of the King Mountain JV.
(3)   Weighted average revenue per Bitcoin mined is calculated as the sum of total self-mining revenue divided by Bitcoin mined during the respective periods and includes our net share of the King Mountain JV; it excludes our discontinued operations at Drumheller, Alberta.
(4)   Bitcoin mined includes our net share of the King Mountain JV and excludes our discontinued operations at Drumheller, Alberta. Bitcoin mined excluding our net share of the King Mountain JV was 190 and 553 for the three months ended September 30, 2024 and 2023, respectively, and 993 and 1,447 for the nine months ended September 30, 2024 and 2023, respectively.
(5)   Energy capacity under management (mining) includes 180 MW of self-mining sites comprised of Alpha, Medicine Hat, and Salt Creek, 205 MW of hosting capacity at Vega, and 280 MW of capacity under management at our King Mountain JV. The remaining 302 MW is from our Managed Services agreement with Ionic.
(6)   Total energy capacity under management includes the 967 MW of energy capacity under management (mining) above, 310 MW of capacity from our four natural gas power generation facilities, 3 MW of capacity from our five cloud and colocation data centers, and 42 MW of capacity at a non-operational site in Canada.

Select Third Quarter 2024 Financial Results

U.S. Data Mining Group, Inc. dba US Bitcoin Corp (“USBTC”) and Hut 8 Mining Corp. completed an all-stock merger of equals (the “Business Combination”) on November 30, 2023. USBTC was deemed the accounting acquirer in the transaction and, as a result, the historical figures in the Company’s income statement for the three and nine months ended September 30, 2023 reflect USBTC’s standalone performance. Results for the three and nine months ended September 30, 2024 reflect the performance of the combined company. With respect to the balance sheet, the ending balance for Q3 2024 is being compared to year-end 2023 balance, both of which reflect the combined company’s performance. All financial results are reported in US dollars.

Revenue for the three months ended September 30, 2024 was $43.7 million compared to $21.7 million in the prior year period, and consisted of $11.6 million in Digital Asset Mining revenue, $20.8 million in Managed Services revenue, $3.4 million in High Performance Computing – Colocation and Cloud revenue, and $7.9 million in Other revenue. Other consists primarily of power revenues from the Company’s natural gas power plants in Ontario, hosting service fees, GPU-as-a-Service revenue, equipment repair and equipment sales, if any.

Cost of revenue exclusive of depreciation and amortization for the three months ended September 30, 2024 was $17.6 million versus $13.5 million in the prior year period, and consisted of $7.3 million in cost of revenue for Digital Asset Mining, $2.8 million in cost of revenue for Managed Services, $2.6 million in cost of revenue for High Performance Computing – Colocation and Cloud, and $4.9 million in cost of revenue for Other.

Depreciation and amortization expense for the three months ended September 30, 2024 was $10.5 million compared to $4.5 million for the prior year period. The increase was primarily driven by depreciation and amortization of property and equipment acquired through the Business Combination and the purchase of natural gas power generation facilities in Ontario.

General and administration expenses for the three months ended September 30, 2024 were $16.2 million versus $4.2 million in the prior year period. This increase was driven by a $4.7 million increase in stock-based compensation, a $4.6 million increase in salary and benefit costs due to added headcount as part of the Business Combination and to support the Company’s growth, a $0.7 million increase in insurance expenses, a $0.7 million increase in professional fees, a $0.7 million increase in other G&A expenses, and a $0.6 million increase in sales tax expenses.

Net income for the three months ended September 30, 2024 was $0.9 million versus a net loss of $4.4 million in the prior year period. The Company recognized a $6.0 million gain on debt extinguishment related to the conversion of our Anchorage Loan into common stock of the Company in Q3 2024.

Adjusted EBITDA for the three months ended September 30, 2024 was $5.6 million, compared to $11.4 million in the prior year period. A reconciliation of Adjusted EBITDA to the most comparable GAAP measure, net income (loss), and an explanation of this measure has been provided in the table included below in this press release.

As of September 30, 2024, the Company’s Bitcoin held in reserve was 9,106 Bitcoin, which represented a market value of approximately $576.5 million, and the Company’s total cash was $72.9 million.

Conference Call

The Hut 8 Corp. Q3 2024 webcast will commence at 8:30 a.m. ET, today.

To join the live webcast, please visit this link.

Supplemental Materials and Upcoming Communications:

The Company has made available on its website materials designed to accompany the discussion of its results, along with certain supplemental financial information and other data. For important news and information regarding the Company, including investor presentations and timing of future investor conferences, visit the Investor Relations section of the Company's website: https://hut8.com/investors. The Company uses this website as a primary channel for disclosing key information to its investors, some of which may contain material and previously non-public information.

Analyst Coverage of Hut 8

A full list of Hut 8 Corp. analyst coverage can be found here: https://hut8.com/investors/analyst-coverage/.

Upcoming Conferences & Events:

  • November 13–14: Cantor Crypto, Digital Assets & AI Infrastructure Conference, Miami
  • November 19: 15th Annual Craig-Hallum Alpha Select Conference, New York City
  • November 19–20: Roth 13th Annual Technology Conference, New York City
  • December 4: Morgan Stanley Energy & Clean Tech Symposium, New York City
  • December 12: Northland Growth Conference, Virtual

About Hut 8

Hut 8 Corp. is an energy infrastructure operator and Bitcoin miner with self-mining, hosting, managed services, and traditional data center operations across North America. Headquartered in Miami, Florida, Hut 8 Corp.’s portfolio comprises twenty sites: ten Bitcoin mining, hosting, and Managed Services sites in Alberta, New York, and Texas, five high performance computing data centers in British Columbia and Ontario, four power generation assets in Ontario, and one non-operational site in Alberta. For more information, visit www.hut8.com and follow us on X (formerly known as Twitter) at @Hut8Corp.

Cautionary Note Regarding Forward–Looking Information

This press release includes “forward-looking information” and “forward-looking statements” within the meaning of Canadian securities laws and United States securities laws, respectively (collectively, “forward-looking information”). All information, other than statements of historical facts, included in this press release that address activities, events, or developments that Hut 8 expects or anticipates will or may occur in the future, including statements relating to the impacts of the Company’s initiatives on driving topline growth, strengthening the Company’s competitive position, generating nine figures of annualized revenue and reducing interest expense by more than $17 million over three years, the Company’s efforts to convert and commercialize assets capable of supporting AI compute at scale, the potential structures the Company is exploring with potential partners, the Company’s vision to build a digital infrastructure platform that meets the demands of today and the technologies and breakthroughs of tomorrow, the Company’s merging of traditional data center architecture with the flexibility and cost-efficiency of modular design at its Vega site to unlock long-term synergies, the improvement of the Company’s average fleet efficiency and increased self-mining hashrate as a result of its fleet upgrade and the option to purchase hosted machines, the expected timing of energization at Vega, the expected timing and revenue generation of the deployment of U3S21EXPH miners at Vega and the Company’s future business strategy, competitive strengths, expansion, and growth of the business and operations more generally, and other such matters is forward-looking information. Forward-looking information is often identified by the words “may”, “would”, “could”, “should”, “will”, “intend”, “plan”, “anticipate”, “allow”, “believe”, “estimate”, “expect”, “predict”, “can”, “might”, “potential”, “predict”, “is designed to”, “likely,” or similar expressions.

Statements containing forward-looking information are not historical facts, but instead represent management’s expectations, estimates, and projections regarding future events based on certain material factors and assumptions at the time the statement was made. While considered reasonable by Hut 8 as of the date of this press release, such statements are subject to known and unknown risks, uncertainties, assumptions, and other factors that may cause the actual results, level of activity, performance, or achievements to be materially different from those expressed or implied by such forward-looking information, including but not limited to, security and cybersecurity threats and hacks, malicious actors or botnet obtaining control of processing power on the Bitcoin network, further development and acceptance of the Bitcoin network, changes to Bitcoin mining difficulty, loss or destruction of private keys, increases in fees for recording transactions in the Blockchain, erroneous transactions, reliance on a limited number of key employees, reliance on third party mining pool service providers, regulatory changes, classification and tax changes, momentum pricing risk, fraud and failure related to digital asset exchanges, difficulty in obtaining banking services and financing, difficulty in obtaining insurance, permits and licenses, internet and power disruptions, geopolitical events, uncertainty in the development of cryptographic and algorithmic protocols, uncertainty about the acceptance or widespread use of digital assets, failure to anticipate technology innovations, climate change, currency risk, lending risk and recovery of potential losses, litigation risk, business integration risk, changes in market demand, changes in network and infrastructure, system interruption, changes in leasing arrangements, failure to achieve intended benefits of power purchase agreements, potential for interrupted delivery, or suspension of the delivery, of energy to the Company’s mining sites, and other risks related to the digital asset and data center business. For a complete list of the factors that could affect the Company, please see the “Risk Factors” section of the Company’s Transition Report on Form 10-K for the transition period from July 1, 2023 to December 31, 2023, available under the Company’s EDGAR profile at www.sec.gov, and Hut 8’s subsequent quarterly reports and other continuous disclosure documents which are available under the Company’s SEDAR+ profile at www.sedarplus.ca and under the Company’s EDGAR profile at www.sec.gov.

Adjusted EBITDA

In addition to results determined in accordance with GAAP, Hut 8 relies on Adjusted EBITDA to evaluate its business, measure its performance, and make strategic decisions. Adjusted EBITDA is a non-GAAP financial measure. The Company defines Adjusted EBITDA as net income (loss) before interest expense, income tax provision, depreciation and amortization, further adjusted by the removal of gains on the extinguishment of debt (if applicable), gain (loss) on derivatives, depreciation and amortization embedded in the equity in earnings (losses) from an unconsolidated joint venture, foreign exchange gain, gain on the sale of property and equipment (if applicable), non-recurring transactions, net income attributable to noncontrolling interest, and stock-based compensation expense in the period presented. You are encouraged to evaluate each of these adjustments and the reasons the Company’s board of directors and management team consider them appropriate for supplemental analysis.

The Company’s board of directors and management team use Adjusted EBITDA to assess its financial performance because it allows them to compare operating performance on a consistent basis across periods by removing the effects of capital structure (such as varying levels of interest expense and income), asset base (such as depreciation and amortization), and other items (such as non-recurring transactions mentioned above) that impact the comparability of financial results from period to period.

Net income (loss) is the GAAP measure most directly comparable to Adjusted EBITDA. In evaluating Adjusted EBITDA, you should be aware that in the future the Company may incur expenses that are the same as or similar to some of the adjustments in such presentation. The Company’s presentation of Adjusted EBITDA should not be construed as an inference that its future results will be unaffected by unusual or non-recurring items. There can be no assurance that the Company will not modify the presentation of Adjusted EBITDA in the future, and any such modification may be material. Adjusted EBITDA has important limitations as an analytical tool and you should not consider Adjusted EBITDA in isolation or as a substitute for analysis of results as reported under GAAP. Because Adjusted EBITDA may be defined differently by other companies in the industry, the Company’s definition of this non-GAAP financial measure may not be comparable to similarly titled measures of other companies, thereby diminishing its utility.


 
Hut 8 Corp. and Subsidiaries
Consolidated Statements of Operations and Comprehensive Income (Loss)
(Unaudited, in USD thousands, except share and per share data)
             
  Three Months Ended Nine Months Ended
  September 30,  September 30, September 30, September 30,
      2024     2023   2024     2023 
Revenue:            
Digital Asset Mining $11,611  $15,565  $55,880  $39,069 
Managed Services  20,820   4,777   39,072   14,976 
High Performance Computing – Colocation and Cloud  3,421      10,112    
Other  7,883   1,361   25,627   3,835 
Total revenue  43,735   21,703   130,691   57,880 
             
Cost of revenue (exclusive of depreciation and amortization shown below):            
Cost of revenue - Digital Asset Mining  7,257   10,875   31,346   27,427 
Cost of revenue - Managed Services  2,812   1,422   8,693   5,319 
Cost of revenue - High Performance Computing – Colocation and Cloud  2,610      7,699    
Cost of revenue - Other  4,880   1,229   18,604   1,274 
Total cost of revenue  17,559   13,526   66,342   34,020 
             
Operating expenses (income):            
Depreciation and amortization  10,462   4,486   33,465   11,454 
General and administrative expenses  16,175   4,171   54,073   15,757 
Losses (gains) on digital assets  1,552   185   (201,180)  185 
(Gain) loss on sale of property and equipment  (444)     (634)  445 
Realized gain on sale of digital assets           (2,376)
Impairment of digital assets           1,431 
Legal settlement           (1,531)
Total operating expenses (income)  27,745   8,842   (114,276)  25,365 
Operating (loss) income  (1,569)  (665)  178,625   (1,505)
             
Other income (expense):            
Foreign exchange gain (loss)  703      (976)   
Interest expense  (7,938)  (5,723)  (20,231)  (18,955)
Gain on debt extinguishment  5,966      5,966   23,683 
Gain on derivatives  2,704      19,923    
Equity in earnings of unconsolidated joint venture  1,495   2,075   8,457   8,717 
Total other income (expense)  2,930   (3,648)  13,139   13,445 
             
Income (loss) from continuing operations before taxes  1,361   (4,313)  191,764   11,940 
             
Income tax provision  (453)  (61)  (2,975)  (672)
             
Net income (loss) from continuing operations $908  $(4,374) $188,789  $11,268 
             
Loss from discontinued operations (net of income taxes of $nil, $nil, $nil, $nil, respectively)        (9,364)   
             
Net income (loss)  908   (4,374)  179,425   11,268 
             
Less: Net (income) loss attributable to non-controlling interests  (261)     232    
Net income (loss) attributable to Hut 8 Corp. $647  $(4,374) $179,657  $11,268 
             
Net income (loss) per share of common stock:            
Basic from continuing operations attributable to Hut 8 Corp. $0.01  $(0.10) $2.10  $0.26 
Diluted from continuing operations attributable to Hut 8 Corp. $0.01  $(0.10) $1.95  $0.25 
             
Weighted average number of shares of common stock outstanding:            
Basic  91,182,107   43,197,355   90,178,607   42,954,301 
Diluted  96,407,378   43,197,355   97,984,059   44,203,215 
             
Net income (loss) $908  $(4,374) $179,425  $11,268 
Other comprehensive income (loss):            
Foreign currency translation adjustments  8,057      (10,379)   
Total comprehensive income (loss)  8,965   (4,374)  169,046   11,268 
Less: Comprehensive (income) loss attributable to non-controlling interest  (395)     162    
Comprehensive income (loss) attributable to Hut 8 Corp. $8,570  $(4,374) $169,208  $11,268 


Adjusted EBITDA Reconciliation

          
  Three Months Ended   
     September 30, September 30, Increase
(in USD thousands) 2024 2023     (Decrease)
Net Income (loss) $ 908  $ (4,374) $ 5,282 
Interest expense  7,938   5,723   2,215 
Income tax provision  453   61   392 
Depreciation and amortization  10,462   4,486   5,976 
Gain on debt extinguishment  (5,966)     (5,966)
Gain on derivatives  (2,704)     (2,704)
Share of unconsolidated joint venture depreciation and amortization (1)  5,486   5,250   236 
Foreign exchange gain  (703)     (703)
Gain on sale of property and equipment  (444)     (444)
Non-recurring transactions (2)  (14,530)     (14,530)
Net income attributable to non-controlling interests  (261)     (261)
Stock-based compensation expense  4,957   303   4,654 
Adjusted EBITDA $ 5,596  $ 11,449  $ (5,853)


(1)   Net of the accretion of fair value differences of depreciable and amortizable assets included in equity in earnings of unconsolidated joint venture in the Consolidated Statements of Operations and Comprehensive Income (Loss) in accordance with ASC 323. See Note 9. Investments in unconsolidated joint venture of our Unaudited Condensed Consolidated Financial Statements for further detail.
(2)   Non-recurring transactions for the three months ended September 30, 2024 primarily represent a $13.5 million contract termination fee received from MARA Holdings and a release of relocation fees that were over-accrued in the prior period. Non-recurring transactions for the three months ended September 30, 2023 were nil.


Contacts

Hut 8 Investor Relations
Sue Ennis
ir@hut8.com

Hut 8 Media Relations
media@hut8.com


FAQ

What was Hut 8's revenue and profit in Q3 2024?

Hut 8 (HUT) reported revenue of $43.7 million and net income of $0.9 million in Q3 2024.

How many Bitcoin did Hut 8 mine in Q3 2024?

Hut 8 (HUT) mined 234 Bitcoin during Q3 2024 at a weighted average revenue of $61,025 per Bitcoin.

What is Hut 8's Bitcoin reserve as of September 30, 2024?

Hut 8 (HUT) held 9,106 Bitcoin in reserve with a market value of approximately $576.5 million as of September 30, 2024.

What is Hut 8's partnership with BITMAIN in 2024?

Hut 8 (HUT) partnered with BITMAIN to develop and host ~15 EH/s of the U3S21EXPH, a next-generation ASIC miner, with an option to purchase the entire capacity by EOY 2025.

Hut 8 Corp.

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