Blockchain
Hut 8 Reports Third Quarter 2020 Financial Results
Toronto, Ontario–(Newsfile Corp. – November 12, 2020) – Hut 8 Mining Corp. (TSX: HUT) (OTCQX: HUTMF) (“Hut 8” or “the Company“), a publicly listed bitcoin mining company, today announces its financial results for the third quarter ending September 30, 2020 (“Q3-2020”). Hut 8 reports all amounts in Canadian Dollars unless otherwise stated.
Q3-2020 Highlights
- Quarterly revenue of $5.8 million with mining profit margin of -37%.
- Revaluation gain related to Hut 8’s bitcoin holdings of $5.6 million for the quarter with a bitcoin price at quarter end of US$10,788.
- Net loss of $0.9 million and negative adjusted EBITDA of $2.9 million.
- Renegotiated key terms with lender to provide more downward flexibility with bitcoin collateral and save Hut 8 nearly $500,000 per year in interest expense.
- Hosting revenue of $0.5 million from Hut 8’s first hosting client with 6MW of latest generation bitcoin mining equipment.
- Transferred the management of site operations from Bitfury to Hut 8, providing savings of over $1.5 million per year.
- Made a bitcoin equipment order for 275 PH/s of which 154 PH/s using 6.7MW was installed this quarter with the remainder expected to be installed by the end of 2020.
- Hut 8 became the first company to enter and exit the TSX Sandbox successfully, which solidifies its place as a TSX issuer.
Selected Financial Information
| Three months ended September 30, | Nine months ended September 30, | |||||||||||
| 2020 | 2019 | 2020 | 2019 | |||||||||
| Revenue | $ | 5,754,732 | $ | 26,749,874 | $ | 27,724,292 | $ | 67,132,276 | ||||
| Site operating costs | (7,871,231 | ) | (11,353,029 | ) | (29,120,406 | ) | (34,372,623 | |||||
| Mining profit | (2,116,499 | ) | 15,396,845 | (1,396,114 | ) | 32,759,653 | ||||||
| Mining profit margin | -37% | 58% | -5% | 49% | ||||||||
| Depreciation | (3,545,173 | ) | (8,178,269 | ) | (17,512,599 | ) | (24,534,807 | |||||
| Gross profit | $ | (5,661,672 | ) | $ | 7,218,576 | $ | (18,908,713 | ) | $ | 8,224,846 | ||
| Gross profit margin | -98% | 27% | -68% | 12% | ||||||||
| Expenses | (787,965 | ) | (707,270 | ) | (2,694,002 | ) | (2,090,574 | |||||
| Share-based compensation | (167,743 | ) | (670,136 | ) | 479,892 | (2,427,144 | ||||||
| Gain on use of digital assets | 198,369 | 514,135 | 1,800,984 | 5,433,530 | ||||||||
| Revaluation of digital assets | 5,577,854 | (10,050,642 | ) | 13,713,962 | 8,243,089 | |||||||
| Net operating income (loss) | (841,157 | ) | (3,695,337 | ) | (5,607,877 | ) | 17,383,747 | |||||
| Net finance expense | (567,787 | ) | (1,122,930 | ) | (1,909,354 | ) | (3,512,166 | |||||
| Foreign exchange gain (loss) | 508,606 | (370,374 | ) | (772,714 | ) | 703,347 | ||||||
| Gain on share issuance | – | – | – | 951,059 | ||||||||
| Net income (loss) | $ | (900,338 | ) | $ | (5,188,641 | ) | $ | (8,289,945 | ) | $ | 15,525,987 | |
| Adjusted EBITDA | $ | (2,904,464 | ) | $ | 14,689,575 | $ | (3,548,032 | ) | $ | 30,669,079 | ||
| Adjusted EBITDA margin | -50% | 55% | -13% | 46% | ||||||||
| Net income (loss) per share – basic and diluted |
$ | (0.01 | ) | $ | (0.07 | ) | $ | (0.09 | ) | $ | 0.20 | |
Q3-2020 Overview
Q3-2020 was the first full quarter after the bitcoin halving where bitcoin production was cut in half while the network hash rate continued to rise, making it one of the most difficult periods for bitcoin miners to operate. To put this into context, it became 140% more difficult to mine for a bitcoin from just before the halving in May 2020 to September 30, 2020, while the bitcoin price increased by 9% in that same period. The economics of mining bitcoin have significantly improved subsequent to Q3-2020.
Hut 8 also recognized $0.5 million of hosting revenue after signing up its first client with 6MW of latest generation bitcoin mining equipment. This is a new revenue stream for Hut 8 and provides consistent recurring revenue with its available electrical capacity and existing infrastructure.
Hut 8 has continued to find ways to reduce costs in Q3-2020 through many successful initiatives in the quarter. In July 2020, the Company re-negotiated its credit facility terms with Genesis Global Capital, LLC (“Genesis) and successfully reduced the interest rate from 9.85% to 8.00% per annum saving approximately $500,000 per year.
Another initiative during Q3-2020 was that Hut 8 transferred the Clarke chips from its Drumheller facility to Medicine Hat which brought together Hut 8’s higher efficiency chips with its best electricity pricing at Medicine Hat. Also, Hut 8 completed the transfer of the management of operations of both the Medicine Hat and Drumheller facilities from Bitfury to Hut 8, providing for savings of over $1.5 million per year. With full control over the sites, Hut 8 will continue to streamline operations while maintaining the highest industry standards.
Hut 8’s strategy of mining and holding bitcoin continued to pay off as there was a $5.6 million gain on the re-measurement of bitcoin holdings in Q3-2020. Additionally, by only strategically selling bitcoin at higher prices, Hut 8 recorded a $0.2 million gain on the use of digital assets. Overall, for Q3-2020, Hut 8 recorded a net loss of approximately $0.9 million and a negative Adjusted EBITDA of $2.9 million.
More than halfway through the quarter, Hut 8 completed the installation of 1,000 M31S and 1,000 M31S+ mining equipment at its Medicine Hat facility. The equipment collectively increased Hut 8’s mining power by approximately 154 PH/s using 6.7 MW of power. The remainder of the equipment purchase, which consists of 1,590 M30S units is expected to be shipped late November 2020 and will provide an additional 140 PH/s using approximately 5.3MW.
Hut 8 also achieved a milestone when they became the first company to successfully exit the TSX Sandbox which solidifies Hut 8 as a TSX listed issuer. Hut 8 was also the first issuer to be listed to the TSX via the TSX Sandbox and has been trading on the senior TSX exchange since early October 2019.
This release should be read in conjunction with the Company’s unaudited condensed consolidated interim financial statements and corresponding MD&A for the three and nine months ended September 30, 2020 filed on SEDAR and posted on the Company’s website.
ABOUT HUT 8 MINING CORP.
Hut 8 is a bitcoin mining company with industrial scale operations in Canada. Hut 8 creates value for investors through low production costs and appreciation of its bitcoin inventory. The company provides investors with direct exposure to bitcoin, without the technical complexity or constraints of purchasing the underlying cryptocurrency. Investors avoid the need to create online wallets, wire money offshore, and safely store their bitcoin.
The Company’s common shares are listed under the symbol “HUT” on the TSX and as “HUTMF” on the OTCQX Exchange.
Key investment highlights and FAQ’s: https://www.hut8mining.com/investors.
Keep up-to-date on Hut 8 events and developments and join our online communities at Twitter, Instagram and LinkedIn.
Hut 8 Corporate Contact:
Jimmy Vaiopoulos
Interim Chief Executive Officer
Tel: (647) 256-1992
Email: [email protected]
Non-GAAP Measures
This press release presents certain non-GAAP (“GAAP” refers to Generally Accepted Accounting Principles) financial measures to assist readers in understanding the Company’s performance. These non-GAAP measures do not have any standardized meaning and therefore are unlikely to be comparable to similar measures presented by other issuers and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP. Management uses these non-GAAP measures to supplement the analysis and evaluation of operating performance.
The following terms are used, which are not found in the Chartered Professional Accountants of Canada Handbook and do not have a standardized meaning under GAAP.
EBITDA (Earnings before Interest, Taxes, Depreciation, and Amortization)
- “EBITDA” represents net income or loss excluding net finance income or expense, income tax or recovery, depreciation, and amortization.
- “Adjusted EBITDA” represents EBITDA adjusted to exclude share-based compensation, fair value loss or gain on revaluation of digital assets, write-offs, and costs associated with one-time transactions (such as listing fees).
- “Adjusted EBITDA Margin” represents Adjusted EBITDA as a percentage of revenue.
EBITDA is used to show ongoing profitability without the impact of non-cash accounting policies, capital structure, and taxation. This provides a consistent comparable metric for profitability.
“Mining Profit” represents gross profit (revenue less cost of revenue), excluding depreciation. “Mining Profit Margin” represents Mining Profit as a percentage of revenue. Mining Profit and Mining Profit Margin show the cash expenses against the revenue without the impact of non-cash accounting policies such as depreciation.
FORWARD-LOOKING STATEMENTS
Certain information in this press release constitutes forward-looking information. In some cases, but not necessarily in all cases, forward-looking information can be identified by the use of forward-looking terminology, such as “plans”, “targets”, “expects” or “does not expect”, “is expected”, “estimates”, “intends”, “assumes”, “anticipates” or “does not anticipate” or “believes”, or variations of such words and phrases, or state that certain actions, events or results “may”, “could”, “would”, “might”, “will” or “will be taken”, “occur” or “be achieved”. In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances contain forward-looking information. Statements containing forward-looking information are not historical facts, but instead represent management’s expectations, estimates and projections regarding future events.
Forward-looking information is necessarily based on a number of opinions, assumptions and estimates that, while considered reasonable by Hut 8 as of the date of this press release, 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 the factors described in greater detail in the “Risk Factors” section of the Filing Statement dated March 1, 2018 relating to the Qualifying Transaction of Oriana Resources Corporation and Hut 8, which is available at www.sedar.com. These factors are not intended to represent a complete list of the factors that could affect Hut 8; however, these factors should be considered carefully. There can be no assurance that such estimates and assumptions will prove to be correct. The forward-looking statements contained in this press release are made as of the date of this press release, and Hut 8 expressly disclaims any obligation to update or alter statements containing any forward-looking information, or the factors or assumptions underlying them, whether as a result of new information, future events or otherwise, except as required by law.
Neither the TSX nor its Regulation Services Provider (as that term is defined in the policies of the TSX) accepts responsibility for the adequacy or accuracy of this release.
Welcome to Blocks & Headlines, your daily deep-dive into the most impactful movements in blockchain technology and the cryptocurrency sector. In today’s edition, we unpack five major stories that illuminate trends in funding, sustainability, payment innovation, banking collaborations, and technical interoperability—all vital signposts for developers, investors, and Web3 enthusiasts. Here’s what’s on the docket:
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Camp Network’s New IP-Focused Testnet
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Blockchain for Sustainable Packaging
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Meta’s Blockchain-Based Payment System Plans
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Mocse Credit Union Joins Metal Blockchain’s Innovation Program
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Apex Fusion on the Urgency of Blockchain Defragmentation
Through concise reporting, opinion-driven analysis, and SEO-optimized insights—featuring keywords like blockchain, cryptocurrency, Web3, DeFi, and NFTs—we’ll explore how these developments shape the next wave of decentralized finance, enterprise adoption, and mass onboarding.
1. Camp Network Launches Testnet for IP-Focused Blockchain
What Happened:
Camp Network has unveiled its long-anticipated testnet following a $30 million funding round led by leading crypto VCs. This new network is tailored for intellectual property (IP) asset tokenization, aiming to streamline rights management and royalty payments via smart contracts.
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Technical Highlights:
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Modular Consensus: Hybrid PoS/PoA consensus that allows IP rightsholders to validate transactions.
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On-Chain Licensing: Smart contracts enabling programmable licensing terms, automated royalty splits, and revocable access controls.
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Interoperability: Bridges to Ethereum and Polygon enable seamless asset transfers and liquidity provisioning.
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Analysis & Implications:
By focusing on IP tokenization, Camp Network addresses a glaring gap in current NFT platforms, which often lack robust legal-framework integration. This specialization could catalyze:
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New Revenue Models: Musicians, authors, and inventors can fractionalize royalties, unlocking liquidity and democratizing investment in creative works.
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Institutional Adoption: Traditional publishers and studios may pilot tokenized licensing, accelerating blockchain’s entrée into regulated industries.
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Secondary Markets: With on-chain licensing data, marketplaces can enforce provenance and anti-fraud measures more effectively.
Camp Network’s testnet success will hinge on developer tooling, legal partnerships, and gas-fee economics. Should it deliver a smooth UX and clear ROI for rightsholders, it could set a new standard for Web3 IP infrastructure.
Source: The Block
2. Blockchain as a Sustainable Packaging Game-Changer
What Happened:
A recent report explores how blockchain can revolutionize sustainable packaging by delivering end-to-end supply-chain transparency. The solution combines on-chain tracking of materials, IoT sensor data for carbon footprint measurement, and tokenized incentives for recycling.
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Key Components:
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Immutable Traceability: Each packaging component is logged on a public ledger, enabling consumers to verify sustainable sourcing.
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Carbon Credit Tokens: Brands earn tokenized credits when they hit recycling targets, tradable on carbon-market DAOs.
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Consumer-Facing Apps: QR-code scanning interfaces reveal environmental impact metrics and reward programs.
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Analysis & Implications:
Integrating blockchain with sustainable packaging tackles greenwashing and fragmented reporting. The ability to tie physical materials to on-chain records introduces:
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Enhanced Accountability: Brands face real-time public scrutiny of ESG claims, improving trust and regulatory compliance.
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Market Mechanisms: Carbon credit tokens linking packaging to broader DeFi ecosystems incentivize circular economy behaviors.
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Consumer Engagement: NFTs or loyalty tokens tied to sustainable purchases could accelerate brand loyalty in eco-conscious demographics.
This convergence of blockchain, IoT, and token economics exemplifies how decentralized technologies can underpin not only financial systems but also planetary stewardship.
Source: Yahoo Finance
3. Meta Plans New Blockchain-Based Payment System
What Happened:
Meta is reportedly developing a blockchain-powered payment network to underpin its digital wallet ambitions, aiming to facilitate low-fee remittances, in-app purchases, and peer-to-peer transfers across Facebook, Instagram, and WhatsApp.
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Proposed Features:
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Cross-Border Settlements: Utilizing stablecoins pegged to major fiat currencies to avoid volatility.
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Layer-2 Scalability: Built atop an Ethereum Layer-2 or a proprietary chain to ensure sub-second confirmation times and minimal fees.
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Regulatory Compliance: On-chain KYC/AML checks integrated via permissioned sidechains.
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Analysis & Implications:
Meta’s push into blockchain payments could reshape the competitive landscape:
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Crypto On-Ramp: With 3 billion+ monthly users, built-in wallet functionality could massively expand mainstream cryptocurrency adoption.
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Disintermediation Risk: Traditional payment processors and remittance services face margin compression as Meta internalizes transaction flows.
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Regulatory Scrutiny: Centralized control of a global payments network raises data-privacy and antitrust questions, likely attracting significant oversight.
If Meta balances decentralization ethos with compliance demands, it could serve as a blueprint for other Big Tech firms eyeing Web3 integration.
Source: Dig.watch
4. Mocse Credit Union Joins Metal Blockchain’s Banking Innovation Program
What Happened:
Mocse Credit Union has signed on to Metal Blockchain’s Banking Innovation Program, a consortium designed to accelerate pilot projects in tokenized lending, fractional deposits, and programmable savings accounts.
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Program Benefits:
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Sandbox Environment: Regulatory-compliant testbeds for tokenized asset experiments.
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API Integrations: Plug-and-play modules for KYC, smart-contract auditing, and fiat-crypto on-ramps.
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Co-Innovation Workshops: Joint labs with fellow financial institutions and DeFi projects.
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Analysis & Implications:
This partnership signals the banking sector’s growing willingness to explore blockchain beyond hype:
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Tokenized Deposits: By issuing interest-bearing stablecoin equivalents, credit unions can attract a new demographic of digitally native savers.
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Risk Management: Sandboxed pilots allow institutions to evaluate smart-contract risks without exposing core systems.
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Interoperable Finance: Aligning legacy banking with DeFi rails can unlock hybrid products—e.g., flash loans collateralized by insured deposits.
Such collaborations could spearhead a wave of embedded finance offerings, blurring the lines between centralized and decentralized banking infrastructures.
Source: Newswire
5. Apex Fusion: Defragmenting Blockchain for Mass Adoption
What Happened:
In an op-ed, Apex Fusion argues that blockchain interoperability and defragmentation are critical prerequisites for mainstream Web3 uptake. The piece advocates standardized cross-chain messaging protocols, unified identity layers, and aggregated liquidity pools.
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Core Proposals:
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Protocol Neutral Messaging: A universal middleware to transmit value and data across disparate chains.
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Decentralized Identity (DID): A shared credential framework enabling seamless dApp logins without wallet-hopping.
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Liquidity Hubs: Cross-chain Automated Market Makers (AMMs) that pool assets to reduce slippage and gas friction.
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Analysis & Implications:
A fragmented blockchain ecosystem hinders user experience and developer efficiency:
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Onboarding Friction: New users face wallet complexity, chain-switching hassles, and inconsistent UX across apps.
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Capital Inefficiency: Isolated liquidity silos lead to higher trading costs and limit DeFi yield optimization.
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Developer Overhead: Building multichain dApps requires fragmented toolkits and disparate security audits.
Solving these challenges through interoperable frameworks will be pivotal for DeFi, NFT, and enterprise Web3 solutions to scale beyond niche audiences. Apex Fusion’s recommendations may inform upcoming standards efforts by bodies like the Blockchain Governance Initiative Network (BGIN).
Source: Euro Weekly News
Conclusion
Today’s blockchain developments reflect a maturing industry at the crossroads of innovation and integration:
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Specialized Networks: Camp Network’s IP testnet showcases niche use-cases driving targeted blockchain deployments.
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Sustainability & Token Economics: Linking environmental impact to on-chain incentives demonstrates blockchain’s potential in non-financial arenas.
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Big Tech Entry: Meta’s payment ambitions could accelerate global crypto adoption while raising regulatory stakes.
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Banking Collaboration: Programs like Metal Blockchain’s underscore financial institutions’ appetite for safe, regulated Web3 experimentation.
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Interoperability Imperative: As Apex Fusion highlights, defragmentation and cross-chain standards are essential for seamless UX and liquidity flow.
As blockchain weaves deeper into finance, supply chains, and digital ecosystems, the future hinges on striking the right balance between decentralization, compliance, and user-centric design. Stay tuned for tomorrow’s Blocks & Headlines where we continue to chronicle the pulse of Web3 innovation.
The post Blocks & Headlines: Today in Blockchain – May 9, 2025 appeared first on News, Events, Advertising Options.
Blockchain
Bitget Blockchain4Youth sostiene l’innovazione del Web3 e dell’IA all’hackathon “Build with AI” di Google Developer Group
Bitget, società Web3 e uno dei principali exchange di criptovalute, ha ottenuto un riscontro significativo in occasione del recente hackathon “Build with AI”, tenutosi dal 2 al 5 maggio 2025 presso la Constructor University. Spingendosi oltre la semplice sponsorizzazione, l’iniziativa Blockchain4Youth di Bitget ha coinvolto attivamente più di 130 studenti di talento.
L’evento, organizzato dai Google Developer Groups (GDG) on Campus, ha offerto a Bitget uno spazio dinamico per entrare in contatto diretto con gli innovatori tecnologici di nuova generazione. Nel corso di una presentazione dedicata, è stato introdotto il programma Blockchain4Youth Builder, che mostra l’impegno di Bitget nel formare giovani talenti all’interno dello spazio del Web3. Questa partecipazione evidenzia l’approccio lungimirante di Bitget nell’integrare la formazione in materia di blockchain con i settori emergenti come l’IA, riconoscendo il loro potenziale combinato.
Gli studenti hanno lavorato alla creazione di modelli basati sull’IA e di prodotti in fase iniziale utilizzando gli strumenti avanzati di Google, mentre la presenza di Bitget ha offerto una prospettiva unica su come la blockchain possa migliorare ed essere integrata nelle soluzioni di IA. Questa interazione con il mondo reale ha fornito preziose indicazioni agli studenti, colmando il gap tra conoscenze teoriche e applicazione pratica all’interno del panorama tecnologico in rapida evoluzione.
“La formazione rimane un principio fondamentale della nostra missione e, attraverso iniziative come Blockchain4Youth, intendiamo fornire alle nuove generazioni le competenze necessarie non solo per esplorare, ma anche per plasmare attivamente questo settore dinamico”, ha commentato Vugar Usi Zade, COO di Bitget. “Collaborare con comunità come il Google Developer Group offre una base preziosa per connettersi con talenti di spicco e aiutarli nel percorso di utilizzo della blockchain per creare soluzioni di impatto. Blockchain4Youth continuerà a espandere la sua portata, favorendo la crescita dei futuri leader del Web3 in grado di cogliere le numerose opportunità offerte da questa tecnologia”.
Il coinvolgimento mostrato all’hackathon “Build with AI” di GDG è un elemento chiave del più ampio programma Blockchain4Youth di Bitget, l’iniziativa aziendale dedicata alla Responsabilità Sociale d’Impresa (RSI). Questo programma mira a favorire la prossima generazione di leader Web3 attraverso opportunità formative ed esperienze pratiche.
Tra le iniziative più recenti del programma Blockchain4Youth c’è il lancio del Graduate Program di Bitget, concepito per reclutare i migliori laureati nel settore blockchain e Web3. Inoltre, l’espansione del programma Bitget Builders continua a fornire agli individui più promettenti del Web3 un’esperienza diretta attraverso gli eventi offline, i programmi formativi e la crescita strategica della community.
A proposito di Bitget
Fondata nel 2018, Bitget è una società Web3 tra i principali exchange di criptovalute al mondo. Con oltre 100 milioni di utenti in più di 150 Paesi e aree geografiche, l’exchange Bitget si impegna ad aiutare gli utenti a fare trading in modo più smart con la sua pionieristica funzione di copy trading e altre soluzioni di trading.
The post Bitget Blockchain4Youth sostiene l’innovazione del Web3 e dell’IA all’hackathon “Build with AI” di Google Developer Group appeared first on News, Events, Advertising Options.
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