Hut 8 Corp. Q3 FY2022 Earnings Call

· Earnings call transcript and AI-powered summary

Call Date: Q3 ended September 30, 2022. CEO Jaime Leverton and CFO Shane Downey presented results amid challenging market conditions including fluctuating energy prices, rising global hash rate, Ethereum merge, and Bitcoin trading around US$20,000.

Key Financial Results (Comparisons to Prior Periods)

  • Revenue: $31.7 million (down $18.6 million from $50.3 million in Q3 2021). Decrease driven by lower Bitcoin price, offset partially by fleet expansion and HPC contributions.
  • Digital Asset Mining Revenue: $27.3 million from mining 982 Bitcoin (vs. $47.9 million from 905 Bitcoin in Q3 2021).
  • High Performance Computing (HPC) Revenue: $4.4 million (new contribution; primarily monthly recurring revenue from Kelowna data center).
  • Cost of Revenue: $45.6 million (vs. $21.2 million in Q3 2021), including $25.3 million depreciation (up from $5.2 million) and $20.3 million site operating costs (up $4.3 million).
  • Mining Profit: $9.3 million (vs. $33.5 million in Q3 2021), impacted by lower Bitcoin price and higher electricity costs.
  • Net Loss: $23.8 million (vs. $23.4 million net income in Q3 2021), driven by lower revenue and higher costs; included $7.3 million non-cash gain on digital asset revaluation.
  • Adjusted EBITDA: $2.1 million (vs. $30.7 million in Q3 2021).

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Operator: Welcome to the Hut 8’s Third Quarter Analysts and Investor Call. In addition to the press release issued earlier today, you can find Hut 8’s financial statements and MD&A on the Company’s website at www.hut8mining.com under the Company’s SEDAR profile at www.sedar.com, and under the Company’s EDGAR profile at www.sec.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 during this call may include forward-looking statements within the meaning of the applicable securities legislation regarding the future performance of Hut 8’s Mining Corp. and its subsidiaries. The statements 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 quarterly MD&A for the quarter ended September 30, 2022, as well as the company's MD&A and annual information form for the year ended December 31, 2021. I would now like to turn the call over to Hut 8’s CEO, Jaime Leverton. Please go ahead. Jaime Leverton: Thanks so much, Karlen. Good morning everyone, and thank you for joining us to discuss Hut 8's financial results for the third quarter of the year. The industry continues to face challenging headwinds, fluctuating energy prices, and increasing global hash rate, th

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