Bitcoin mining company Hut 8 reported a more than doubled net loss in the third quarter, with a 46% decline in revenue compared to the previous year. This downturn was attributed to mining fewer coins due to increased network difficulty, operational challenges, and the suspension of certain operations.
The Toronto-based firm disclosed that its loss expanded to C$53.6 million ($39 million) from C$23.8 million, while sales plummeted from C$31.7 million to C$17 million in the corresponding period, as indicated in a statement on its website. The quantity of mined bitcoins in the quarter sharply dropped from 982 to 330.
Despite the overall positive returns observed by some miners in 2023 amid the rising BTC price, Hut 8 cited challenges faced at its Drumheller, Alberta site, where “elevated energy input levels… have led to miner failures.” Presently, operations at the site are running at only 27% of the installed hash rate, according to Hut 8’s earnings statement.
Hut 8’s Nasdaq-traded shares declined by 8.4% to $1.86 at the time of reporting.