Hut 8 Corp. Q2 FY2023 Earnings Call

· Earnings call transcript and AI-powered summary

Period: Second Quarter 2023 (ended June 30, 2023). All figures in CAD unless noted. Comparisons are to Q2 2022.

Financial Highlights

  • Revenue: $19.2 million, down $24.6 million from $43.8 million in Q2 2022, driven by lower Bitcoin mined and Bitcoin price decline.
  • Digital Asset Mining Revenue: $15.0 million (399 Bitcoin mined) vs. $39.1 million (946 Bitcoin mined) in Q2 2022. Factors included higher network difficulty, Drumheller electrical issues, North Bay suspension, and end of GPU Ethereum mining.
  • Bitcoin Price Impact: Average daily closing price ~$37,600 vs. ~$41,400 in Q2 2022.
  • HPC Revenue: $4.2 million vs. $4.7 million in Q2 2022 (prior year included discontinued low-margin products; Q2 2023 impacted by client churn).
  • Cost of Revenue: $23.8 million, down $23.9 million from prior year.
  • Depreciation: $9.5 million vs. $29.8 million in Q2 2022 (lower due to Q4 2022 impairment).
  • Site Operating Costs: $14.3 million, down $12.5 million year-over-year; digital mining costs fell $12.7 million mainly from lower power costs. Average cost per Bitcoin: ~$29,600 vs. ~$25,600 in Q2 2022.
  • Mining Profit: $3.2 million vs. $14.9 million in Q2 2022 (impacted by Bitcoin price, lower production, and Drumheller issues).

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Operator: Good morning, ladies and gentlemen. Welcome to Hut 8’s Second Quarter 2023 Financial Results Analyst and Investor Call. In addition to the media release issued earlier today, you can find Hut 8’s financial statements and MD&A on the Company’s website at www.hut8.io under the Company’s SEDAR profile at www.sedar.com, and under the Company’s EDGAR profile at www.sec.gov. Unless noted otherwise, all amounts referred to during this call are denominated in Canadian dollars. Any comments made during this call may include forward-looking statements within the meaning of applicable securities legislation regarding the future performance of Hut 8 Mining Corp. and its subsidiaries. The statements made reflect current expectations and as such, are subject to a variety of risks and uncertainties that could cause actual results to differ materially from current expectations. These risks and uncertainties include, but are not limited to, the factors discussed in the Hut 8’s Annual Information Form for the year ended December 31, 2022, and the Company’s other continuous disclosure documents. Except as required by applicable law, Hut 8 undertakes no obligation to publicly update or review any forward-looking statements. During the call, management may also make reference to certain non-IFRS measures that are not separately defined under IFRS, such as adjusted EBITDA and mining profit. Management believes that non-IFRS financial information taken in conjunction with IFRS financial m

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