Hut 8 stayed profitable for 2018 despite bear market

10 May, 2019
by David Robb
Mining
Hut 8 stayed profitable for 2018 despite bear market

Leading crypto mining firm Hut 8 recently returned its annual financial statements for 2018. Company CEO Andrew Kiguel gave an interview to Bitcoin Magazine, explaining how the project stayed profitable.

Launched back in December 2017, Hut 8 rapidly became one of the leading Bitcoin mining operations, and has now mined over 8800 BTC. The firm has two mining centers in Alberta, Canada, one located in Medicine Hat and the other in Drumheller.

Hut 8 recorded a $18.2 million profit with revenues of $36.6 million and a net operating loss of $8.2 million. It has reported a gross mining profit margin of 50 percent for the year.

According to Kiguel, "Last year was not profitable for many miners. It was a tough year for us too, especially the end of the year. Our goal is to remain lean, operate efficiently and be able to withstand any short-term changes in price and make it to the next positive bitcoin pricing cycle … Hopefully, we are starting that now."

In the future, Kiguel said that the company will establish new sites in other locations in North America: "we will look to expand in regions that offer competitive energy prices and clean energy...Our goal is to remain lean and operate efficiently to withstand short-term changes in price so that we can maximize profits during the next positive bitcoin pricing cycle, which we're hopefully in the midst of now."

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