Bitcoin rebounding but Hut 8 still reports Q1 loss of $600K

By Medicine Hat News on May 12, 2020.

A deep drop in the price of Bitcoin led to a loss for Hut 8 Cryptocurrency in the first quarter of 2020, the data processing firm that has a major operation in Medicine Hat reported on Monday.

A near 50 per cent drop in price of the cryptocurrency over one week in early March saw it plummet to US$4,100 mid-March as the coronavirus pandemic slammed into commodity markets, though the price has essentially rebounded to rest at about US$8,800 on Monday.

Early in the day, Hut 8 reported that it generated US$12.7 billion in revenue during the first three months of 2020 – a five per cent increase – but the swing in prices and resulting impairment on Bitcoin held, along with network difficulties led to a net loss of $600,000.

In April the company announced it would curtail power use in Medicine Hat – where it buys power from the city-owned utility – in order to gain operating rate efficiency to weather the price drop. There was no statement from the company on the local operating rate included in Monday’s initial release.

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