Financial Data and Key Metrics Changes - Revenue from digital asset mining activities was $133 million in 2022, down from $165.4 million in 2021, reflecting a decrease due to lower Bitcoin prices despite a 28% increase in mining production [14][26] - The company reported a net loss of $242.8 million for the year, compared to a net loss of $72.7 million in the prior year, largely driven by impairment charges and lower revenue [28][90] - Adjusted EBITDA was a loss of $3.9 million in Q4 2022, compared to a positive EBITDA of $35.3 million in the prior year’s quarter [31][90] Business Line Data and Key Metrics Changes - The high-performance computing (HPC) business contributed $16.9 million in revenue in 2022, with a significant portion being monthly recurring revenue [14][88] - The digital asset mining operation generated a profit of $60.4 million in 2022, down from $108.1 million in the prior year, due to lower Bitcoin prices and increased electricity costs [89] Market Data and Key Metrics Changes - The average Bitcoin price in Q4 2022 was approximately $24,600, down from approximately $70,400 in the same quarter a year prior [17] - The company’s Bitcoin holdings were valued at $203.6 million as of December 31, 2022, with 9,086 Bitcoin in custody [19][29] Company Strategy and Development Direction - The company is focused on expanding into high-performance computing and has renovated data centers in key regions, aiming for a diversified business model [8][11] - The merger with US Bitcoin Corp is expected to enhance operational capabilities and diversify the business, with a target completion in Q2 2023 [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for 2023, anticipating extraordinary growth and emphasizing the importance of the merger for future operations [11][12] - The company noted challenges due to fluctuating Bitcoin prices and ongoing disputes affecting operations, particularly at the North Bay site [17][99] Other Important Information - The company recorded a non-cash impairment charge of $113.9 million in Q4 2022 due to the Ethereum merge, impacting GPU mining assets [16][28] - The balance sheet remains healthy with $30.5 million in cash and minimal debt as of year-end 2022 [19][29] Q&A Session Summary Question: What is the timeline for redeploying miners from North Bay to Medicine Hat? - The company is currently assessing options for redeploying miners and has moved them into temporary storage [20][32] Question: How does the drop in natural gas prices impact the outlook for 2023? - Management noted that while power rates have decreased, it is too early to provide specific guidance on the impact for 2023 [56][70] Question: What are the key use cases for the HPC segment? - The HPC segment serves a diverse range of industries, with increasing demand from artificial intelligence and gaming sectors [60][71] Question: What is the status of the merger with USBTC? - The company has received a no-action letter from the Competition Bureau of Canada, indicating no intention to challenge the merger, which is a positive development [43][99] Question: How is the company addressing electrical issues at the Drumheller site? - The company is investigating electrical issues that have reduced production and is exploring options to mitigate these challenges [82][90]

Financial Data and Key Metrics Changes - Revenue for Q3 2022 was $31.7 million, a decrease of $18.6 million compared to Q3 2021's $50.3 million, primarily due to lower Bitcoin prices [11][20] - Digital asset mining revenue was $27.3 million, down from $47.9 million in the same quarter of 2021, with 982 Bitcoin mined compared to 905 Bitcoin in Q3 2021 [12][20] - Adjusted EBITDA for Q3 2022 was $2.1 million, a significant drop from $30.7 million in the prior year [21] - The company recorded a net loss of $23.8 million for the quarter, compared to a net income of $23.4 million in the prior year [20] Business Line Data and Key Metrics Changes - The high-performance computing (HPC) business generated $4.4 million in revenue, primarily from monthly recurring revenue [6][13] - The cost of revenue increased to $45.6 million from $21.2 million in the prior year, with depreciation rising significantly due to more miners and infrastructure [14][20] - Mining profit for the digital asset mining operation was $9.3 million, down from $33.5 million in the prior year [17] Market Data and Key Metrics Changes - The company has the largest self-mined, unencumbered Bitcoin reserves among publicly listed companies, totaling $223.4 million as of September 30, 2022, based on 8,388 Bitcoin held [24] - The average cost of mining Bitcoin fell by 29% compared to Q2 2022, attributed to favorable power rates and a more efficient mining fleet [12][20] Company Strategy and Development Direction - The company maintains a three-pillar strategy focusing on Bitcoin mining, maximizing Bitcoin reserves, and growing the HPC data center business [9] - The company is committed to a conservative approach to balance sheet management, especially in light of market volatility [23] - The company plans to explore opportunities for organic and inorganic growth but remains cautious due to the current market environment [28] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenging macro environment, including fluctuating energy prices and increased global hash rates [5] - The company intends to keep its Bitcoin holdings in cold storage until there is more clarity on market conditions and counterparty risks [46][87] - Management expects consolidation in the industry over the next six to twelve months due to distress among some players [32] Other Important Information - The company delivered a notice of events of default to Validus Power Corp. due to failure to meet operational milestones [16] - The company has raised approximately C$2.6 million under an equity distribution agreement with a maximum proceeds target of C$270 million [22] Q&A Session Summary Question: Insights on plans for next year regarding hash rate or business diversification - Management reiterated a focus on being opportunistic for both organic and inorganic growth but did not provide specific guidance [28] Question: Industry evolution and potential for consolidation - Management expects to see consolidation in the industry due to distress among some companies, but the future behavior of the hash rate remains uncertain [32] Question: Update on Validus and potential vertical integration - Management stated that negotiations with Validus are ongoing and that they are exploring various strategic opportunities [39] Question: Implications of recent events in the Bitcoin mining space - Management expressed concern about potential contagion effects from recent industry events and emphasized a conservative approach [46] Question: Guidance on hash rate capacity and North Bay situation - Management indicated that guidance remains fluid due to the situation at North Bay, which is currently operational [47] Question: Details on cost per coin reduction - Management attributed the 30% reduction in cost per coin to a combination of factors, including normalization of power costs [54] Question: Progress on Zenlayer partnership and HPC capacity - Management provided updates on the Zenlayer partnership and indicated that hardware delivery is ongoing, with environments expected to be operational by the end of the year [75]

Hut 8 Mining Corp. (NASDAQ:HUT) Q2 2022 Earnings Conference Call August 11, 2022 10:00 AM ET Company Participants Jaime Leverton - Chief Executive Officer Shane Downey - Chief Financial Officer Conference Call Participants Chris Brendler - D.A. Davidson Joseph Vafi - Canaccord George Sutton - Craig-Hallum Kevin Dede - HCW Bill Papanastasiou - Stifel Operator Welcome to Hut 8 Second Quarter Analyst and Investor Call. In addition to the press release issued earlier today, you can find Hut 8Â's financial state ...

HUT 8 Company Overview May 2022 Disclaimer This presentation is intended to provide an overview of the business of Hut 8 Mining Corp. ("Hut 8" or the "Company"). This presentation does not constitute or form part of and should not be construed as, an offer to sell or issue or the solicitation of an offer to buy or subscribe for securities of the Company or any of its subsidiaries in any jurisdiction or an inducement to enter into investment activity. No part of this presentation, nor the fact of its distrib ...

Hut 8 Mining Corp. (NASDAQ:HUT) Q1 2022 Earnings Conference Call May 12, 2022 10:00 AM ET Company Participants Jaime Leverton - Chief Executive Officer Shane Downey - Chief Financial Officer Conference Call Participants George Sutton - Craig-Hallum Christopher Brendler - D.A. Davidson Kevin Dede - H.C. Wainwright Operator Welcome to the Hut 8 Q1 2022 Earnings Call. My name is James, and I'll be your operator for today's call. At this time, all participants are in a listen-only mode. Later, we will conduct a ...

HUT 8 Company Overview March 2022 Disclaimer This presentation is intended to provide an overview of the business of Hut 8 Mining Corp. ("Hut 8" or the "Company"). This presentation does not constitute or form part of and should not be construed as, an offer to sell or issue or the solicitation of an offer to buy or subscribe for securities of the Company or any of its subsidiaries in any jurisdiction or an inducement to enter into investment activity. No part of this presentation, nor the fact of its distr ...

Financial Data and Key Metrics Changes - Hut 8 Mining Corp achieved record revenue of CAD173.8 million for 2021, more than tripling from CAD40.7 million in 2020, driven by strong mining activity and increased hash rate [8][9] - The company recorded a net loss of CAD72.7 million for 2021, compared to a net income of CAD19 million in 2020, primarily due to non-operational accounting treatments [16][27] - Adjusted EBITDA for 2021 was CAD96.6 million, a significant improvement from negative adjusted EBITDA of CAD0.2 million in 2020 [20] Business Line Data and Key Metrics Changes - Revenue from mining activities was CAD165.4 million, with 2,786 new Bitcoin mined at an average price of approximately CAD59,400 per Bitcoin [9] - The hosting business generated CAD8.4 million in revenue, up from CAD1.7 million in the prior year, benefiting from onboarding a second customer [10] Market Data and Key Metrics Changes - The cost of revenue for the year was CAD85 million, an increase from CAD59.2 million in the prior year, driven by higher site operating costs and increased depreciation expense [11] - General and administrative costs rose to CAD40.3 million from CAD5.1 million in the prior year, reflecting strategic investments in management and corporate practices [13] Company Strategy and Development Direction - The company is focused on diversifying its operations, including mining Ethereum and expanding its infrastructure through the acquisition of TeraGo's Data Center and Cloud Business [33][36] - Hut 8 aims to achieve a hash rate goal of 6 exahash over the balance of the year, with ongoing evaluations of supply chain opportunities for new mining equipment [45] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's position for continued growth, citing strong operating results and strategic capital investments [6] - The company is committed to leveraging its Bitcoin holdings and exploring non-dilutive measures to enhance liquidity [28][30] Other Important Information - As of December 31, 2021, Hut 8 held 3,518 Bitcoin in custody and 2,000 Bitcoin subject to lending arrangements, totaling CAD323.9 million in Bitcoin holdings [30] - The company recorded a CAD57.9 million unrealized gain on digital assets, contributing to an other comprehensive loss of CAD14.9 million for 2021 [20] Q&A Session Summary Question: What is your mining production plan for the rest of the year? - Management indicated that the third site in North Bay is nearing completion and expected to add over 1 exahash of incremental compute [44] Question: What is your vision for the TeraGo acquisition in the next one to two years? - Management stated that they will continue to drive growth through both organic and inorganic means, evaluating opportunities on a case-by-case basis [46] Question: How do you view capital allocation between mining, hosting, and the data center business? - Management noted that the capital requirements for mining and data centers are fundamentally different, and they will deploy capital based on market opportunities [54] Question: What is the expected impact of the North Bay facility on cost per coin? - Management acknowledged that while the North Bay facility could potentially lower costs, it is difficult to predict due to the variability in global network hashrate and difficulty [62] Question: How much did Ethereum mining contribute recently? - Management confirmed that Ethereum mining still contributes significantly, but they are prepared to shift to the next most profitable blockchain if necessary [67]

Call Start: 10:00 January 1, 0000 11:04 AM ET | --- | --- | |--------------------------------------------------------------------------------------------|-------| | | | | Hut 8 Mining Corp. (NASDAQ:HUT) Q3 Earnings Conference Call November 11, 2021, 10:00 AM ET | | | | | | Company Participants | | | Shane Downey – Chief Financial Officer Jaime Leverton – Chief Executive Officer | | | Conference Call Participants | | | Joseph Vafi – Analyst | | | Chris Brendler – Analyst George Clinton – Analyst | | | Kevin ...

HUT 8 Company Overview November 2021 | --- ...

Hut 8 Mining Corp. (NASDAQ:HUT) Q2 2021 Earnings Conference Call August 12, 2021 10:00 AM ET Company Participants Jaime Leverton – Chief Executive Officer Shane Downey – Chief Financial Officer Conference Call Participants Kevin Dede – H.C. Wainwright Operator Welcome to the Q1 Earnings Release Conference Call. My name is John. I'll be your operator for todayÂ's call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session. [Operator Instructions] Now I ...