Canada-listed Hut 8 (TSX: HUT), a cryptocurrency mining company, announced its annual financial results for the year 2020, showing an 87 percent jump in its net income though the total revenue almost halved.
The company's press release on Thursday revealed that the total revenue of the crypto mining company for the year came in at $40.7 million, out of which, $39 million was generated from Bitcoin mining and the rest from its Hosting services.
Halving Effected Miners the Most
Though the company mined 2,798 Bitcoins last year, compared to 8,618 Bitcoins the previous year, the higher price of the digital currency benefitted the company.
“The decrease was a result of a bitcoin price collapse in mid-March due to economic impacts of COVID-19 affecting all bitcoin miners, as well as the bitcoin halving event which occurred on May 11, 2020, effectively cutting bitcoin production for every miner in half,” Hut 8 noted.
The pre-tax income of the company went up to $4 million from the previous year’s $2.1 million. The realized and unrealized gain of the mining company together remained at $77.2 million.
In addition, the higher income was pushed by the company’s 45 percent reduced expense of $3.4 million. The site operating cost of the mining company also reduced from $45.4 million to $39.7 million.
Meanwhile, the Canadian company continued to expand its mining infrastructure. It purchased 5,400 M30S miners, which will be installed by July producing 475 PH/s of Hash Rate . It is now aiming to generate 1.3 EH/s by the end of the second quarter of 2021.
“The global strength of our Company and mining operations has enabled us to hold the highest amount of self-mined bitcoin on the balance sheet of any publicly-traded company in the world despite a difficult year for bitcoin miners across the industry,” Hut 8 CEO, Jaime Leverton said.
