Hut 8 Corp. reported a steep first-quarter loss and a nearly 58% revenue drop, as the lingering effects of last year’s Bitcoin halving and costly equipment upgrades took a toll.
Bitcoin (BTC) mining firm Hut 8 Corp. posted a sharp downturn in its first-quarter financials, swinging to a significant loss as revenue plunged over 50%, Bloomberg reported.
The company generated $21.8 million in revenue for the quarter, representing a year-over-year decline of nearly 58%. It also posted a net loss of $134.3 million, a stark reversal from the $250.7 million in profit recorded during the same period last year.
According to CEO Asher Genoot, the decline stems from the cumulative effects of the last Bitcoin halving, which cut mining rewards in half. While the halving itself took place last April, its financial impact has only recently fully set in for mining companies, including Hut 8.
As a result, reduced revenue per mined coin, coupled with increased operational downtime related to ongoing upgrades of mining hardware, have squeezed Hut 8’s margins and pushed the company deep into the red.
Despite the current headwinds in the mining sector, Hut 8 is pushing forward with an ambitious new initiative. During the company’s latest earnings call on Thursday, Genoot reiterated that its new mining venture American Bitcoin Corp. will go public.
Hut 8 announced it’s launching American Bitcoin Corp. after it has acquired a majority stake in American Data Centers Inc., a company backed by Donald Trump’s sons Eric Trump and Donald Trump Jr.
The market responded positively to the announcement, with Hut 8 shares surging 17% on the day.
Meanwhile, Hut 8 continues to develop computing infrastructure to support AI workloads, particularly at its sites in Louisiana. This move reflects a growing industry trend in which Bitcoin miners are diversifying into AI and high-performance computing to mitigate the financial strain caused by reduced block rewards following the halving.
