Canadian Bitcoin mining company Hut 8, one of the world's largest publicly traded crypto mining companies by market capitalization and operating capacity made almost $50 million in revenue for the year ending 2018.
2018 Highlights, Revenue Soars but Profits Fall
According to an annual earnings report, Hut 8 made almost $50 million last year in revenue. However, the company triggered nearly $180 million in total losses.
Hut 8 incurred the losses despite boasting record revenue of $49.4 million from mining 5,592 bitcoins. During that period, the company's EBITDA (Earnings before Interest, Taxes, Depreciation, and Amortization) was $19.3 million.
Furthermore, Hut 8 managed to raise $70 million of common equity in Q1-2018, completed its qualifying Transaction to go public on the TSXV. Besides, it expanded operations from 7-85 BlockBox data centers through last year.
Throughout last year, the company's average cost per bitcoin was below the market price of bitcoin.
The Management's Bitcoin Outlook
The company's management is confident the bitcoin is the future of global digital money, and according to Andrew Kiguel, Chief Executive Officer of Hut 8, the company's use of bitcoin as a store of value as well as international payment settlement system will now be even stronger than ever.
Despite the drop in profit, the company remains positive as it eyes a continued uptrend in bitcoin prices.
Since the beginning of 2019, bitcoin has had a positive start appreciating approximately 40% even outperforming the S&P 500, NASDAQ and some commodities like gold and oil.
The crypto winter affected most cryptos, and many miners didn't survive, but Hut 8 managed the cash as well as digital assets to make it through successfully. The recovery of bitcoin price will see Hut 8 benefit and the company will continue managing operations prudently and with focus.