The following is a summary of the Hut 8 Corp. (HUT) Q2 2024 Earnings Call Transcript:

Financial Performance:

• Hut 8 reported revenue growth of 72% year-over-year to $35.2 million in Q2 2024.

• Net loss widened to $71.9 million, compared to $1.7 million in the previous year, largely due to a $71.8 million loss on digital assets under new FASB fair value accounting rules.

• Adjusted EBITDA was a loss of $57.5 million versus a gain of $14.8 million in the previous year.

• Despite increased network difficulty, digital asset mining gross margins expanded from 34% to 46% year-over-year.

Business Progress:

• Hut 8 has shifted operations from third-party hosted to owned facilities, achieving significant reductions in power costs and improving gross margins in digital asset mining.

• The company is advancing a gigawatt-scale power development pipeline and has secured a $150 million investment from Coatue, enhancing its power asset portfolio and deal flow.

• Detailed plans to optimize existing hardware efficiency and is actively engaged in discussions regarding fleet upgrades.

Opportunities:

• The transition to owned infrastructure allows Hut 8 to better control operational costs and scale its digital asset operations more efficiently.

• Hut 8's strategic alignment towards a vertically integrated power business opens diverse opportunities across Bitcoin mining, AI, and other power-intensive applications.

Risks:

• Hut 8's expansion strategy and reliance on volatile digital assets markets introduce risks due to fluctuating cryptocurrency prices and potential regulatory changes affecting the value and operations of digital assets.

More details: Hut 8 IR

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