A Canadian Bitcoin mining firm, Hut 8 has reported record revenue of CAD17.7 million ($13.4 million) in Q3, according to its quarterly financial report ending Sept. 30th published on Nov. 8th.
The mining firm which claims to be the largest public cryptocurrency company by operating capacity and market capitalization attributes the increase in revenue to the addition of more mining equipment at its new City of Medicine Hat (CMH) facility. This is the company’s record revenue in a single quarter “and a 126% increase from the prior quarter revenue of $7.8 million.”
The company also recorded CAD36.4 million ($27.59 million) in the past nine months and CAD7.2 million ($5.46 million) in interest, taxes, depreciation, and amortization (EBITDA), an 86 percent increase from Q3.
Figures and Facts
The mining firm said that it had 40 BlackBoxes at the beginning of July and brought in 16 more in September to have a total of 56 altogether at the CMH facility. The company’s operating capacity increased by 67.2MW.
The mining firm mined 1,978 Bitcoin in Q3 and the cost to mine each Bitcoin was $3.394, which is lower than Bitcoin’s price of around $6,400 and scored a 51 percent mining profit margin. The firm considers itself to be one of “the lowest-cost miners of Bitcoin in the world.”
The new CMH facility was launched in July in partnership with Bitfury, a chip maker of Bitcoin mining equipment. Before the partnership, the firm had mined 1,000 Bitcoins since its launch in December 2017.
Hut 8’s mining profit margins for Q3 were lower because the competition from other Bitcoin miners increased while BTC’s price appreciated through the quarter. The high summer temperatures in Alberta where the company’s Drumheller facility is located resulted in high electricity costs.
Andrew Kiguel, Chief Executive Officer of Hut 8 said:
“This summer, a record-setting heat wave in the province resulted in increased electricity costs during certain periods. The result was increased electricity costs at the Drumheller site by approximately $0.01 per Kilowatt hour on average. We are actively managing our exposure to market prices through a number of different means. Despite this, Hut 8 achieved record revenue for Q3 and strong overall margins.”
The company expects the efficiency of the company’s ASIC’s miners to improve in the next quarter due to cooler months in Alberta, “leading to improved performance in Q4 when compared to Q3.”
The impact of the hot summer was felt less at the new CMH facility because the mining firm buys its electricity under a fixed price contract. The CMH facility is still operating below capacity, and the firm wants to rectify this by Q1 2019
The mining firm operates 73 BlackBox data centers, and 56 of them are housed at its new CMH facility. The company claims to have a total operating capacity of 85.9MW and a hash rate of more than 640 Petahashes per second.