Several publicly traded Bitcoin mining companies reported third-quarter earnings on Wednesday morning, as the industry continues to face challenges in the post-halving economic landscape.
Hut 8 (HUT) reported revenue of $43.7 million, beating estimates by $5.5 million and nearly double the year-ago figure. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) were $5.6 million. The company's generally accepted accounting principles (GAAP) earnings of $0.01 per share beat MarketWatch's estimate of a loss of $0.29 per share. Those numbers represent a significant improvement from the $71.9 million loss in Q2.
Hut 8 said its energy costs were $28.83/MWh, down 33% from $42.73 a year ago. The company held 9,106 Bitcoins in reserve with a market value of $576.5 million and total cash of $72.9 million as of September 30.
“Our long-term vision is to build a digital infrastructure platform that not only meets the needs of today but is also designed for the technologies and disruptions of tomorrow. Our partnership with BITMAIN to develop and launch the U3S21EXPH at the Vega 205 MW facility is a testament to our focus on technological and commercial innovation,” said CEO Asher Genoot.
Hut 8 shares are trading up more than 8% at the time of writing and have risen more than 105% this year. The company now has a market capitalization of $2.5 billion.
Market capitalization of mining companies' stocks
Meanwhile, HIVE Digital Technologies (HIVE) reported adjusted EBITDA of $5.6 million for the quarter and a net loss from sustained operations of $7.7 million after tax, or a loss of $0.06 per share. The company's revenue was $22.6 million, missing the consensus estimate of $25.6 million. Its net loss before tax was $7.3 million, an improvement from a loss of $22.9 million in the year-ago period.
The company said the main difference between adjusted EBITDA and net loss from operations for the period was primarily due to non-cash expenses, including $16.1 million in depreciation and amortization and $2.2 million in stock-related expenses. It also eliminated a one-time gain of $5.2 million from the sale of mining assets.
HIVE mined 340 Bitcoins during the quarter and currently holds 2,604 Bitcoins. As of the end of the quarter, the company’s total cryptocurrency value was $165.2 million, based on a Bitcoin price of $63,300.
Aydin Kilic – President and CEO of HIVE
“I am proud of our team’s success in reducing SG&A expenses by 5% year-over-year, bringing them down to $3.4 million for the quarter, from $3.6 million last year. Even more impressive, we achieved this while increasing our Bitcoin mining capacity by 45%, from 3.8 EH/s to 5.6 EH/s during the same period. Additionally, our high-performance computing (HPC) revenue grew by 8x, while keeping SG&A expenses lower year-over-year,” said Aydin Kilic, Chairman and CEO of HIVE.
Shares of HIVE fell about 2% Wednesday morning, despite rising 16% year-to-date. The company now has a market capitalization of $650 million.
Bitcoin and the Stock Performance of Mining Companies
Finally, Bitfarms (BITF) reported third-quarter revenue of $45 million, up 8% from the previous quarter but below analyst estimates. The company's net loss was $37 million, or a loss of $0.08 per basic and diluted share, which included a $6 million non-cash gain from reassessing potential liabilities related to financing activities in 2023.
Adjusted EBITDA was $6 million, or 14% of revenue, down from $12 million in the second quarter.
Bitfarms has total liquidity of $146 million, including $73 million in cash and 1,147 BTC worth $73 million, based on the BTC price of $63,300 on September 30. As of October 31, the company held 1,188 BTC. In October, the company added 41 BTC to its reserves, bringing the total BTC held in its reserves to 1,188 BTC.
“Despite the challenging third quarter for the Bitcoin mining industry, including record low hash prices, a 62% year-over-year increase in network difficulty, and the first full quarter following the April halving, our mining operations remained profitable and continued to generate free cash flow. While we achieved our year-end efficiency target of 21 W/TH in the third quarter, delays in the delivery and maintenance of Bitmain T21s continue to impact our ability to achieve 21 EH/s in 2024. We are actively working with Bitmain on the maintenance and upgrade of the miners, which we expect to achieve 21 EH/s in the first half of 2025,” said CFO Jeff LCUas.
Bitfarms shares fell 5.5% in trading on Wednesday and are down more than 10% year-to-date. As of Nov. 13, the company's market capitalization was $1.1 billion.
