Hut 8’s profit margins have ballooned thanks to a one-third reduction of costs while the price of bitcoin more than doubled over three months, the company said in its most recent earnings report.
The cryptocurrency firm, which has a major data processing operation in Medicine Hat, also says the recent rise in price of bitcoin has more than reversed a write-down on its holdings from last year.
Net income for the three months ending June 30 was C$33.7 million, while a new valuation of its holdings showed an increase of C$22.4 million.
Company CEO Andrew Kiguel stated in a release the company remains “committed to solely mining bitcoin and retaining an inventory … for appreciation.
“Management underwent significant cost-saving measures at the end of 2018 to ensure we maintain a lean cost structure. The strategy led to improved margins and the ability to leverage the appreciation in the price of bitcoin.
“Our operations are stronger than ever.”
The company that handles transactions of cryptocurrency to earn a fee in bitcoin stated its costs per unit mined fell by about 30 per cent to US$2,757 over the quarter. The commodity price of bitcoin sat at US$4,158 to begin the quarter but ended it at US$10,817.
