Hut 8 Corp. Bleeds Cash in Q1: Bitcoin Halving and Costly Upgrades Slam Profits

Bitcoin Mining Giant Swings to Massive Loss as Revenue Craters

Hut 8 Corp. is reeling from a brutal first quarter, with a staggering loss and revenue plummeting nearly 58%. The Bitcoin halving from last year and pricey equipment overhauls are hitting the company hard.

This Bitcoin mining behemoth just reported a shocking nosedive in its Q1 numbers, flipping from profit to a huge loss as revenue tanked by over half.

The numbers are grim: Hut 8 raked in just $21.8 million this quarter, a jaw-dropping 58% drop from last year. And the net loss? A whopping $134.3 million, a total 180 from the $250.7 million profit they celebrated in the same period last year.

CEO Asher Genoot isn't mincing words: the Bitcoin halving last April is finally biting hard. The cut in mining rewards is now fully squeezing companies like Hut 8.

It's a double whammy: less cash per coin mined and more downtime from upgrading their rigs. Hut 8's margins are being crushed, plunging them deep into the red.

But Hut 8 isn't throwing in the towel. Amid the chaos, they're charging ahead with a bold new move. On Thursday's earnings call, Genoot doubled down on their plan to take American Bitcoin Corp. public.

Hut 8 is pulling the trigger on American Bitcoin Corp. after snagging a majority stake in American Data Centers Inc., backed by none other than Donald Trump's sons, Eric and Don Jr.

The market's loving it, with Hut 8 shares rocketing up 17% on the news.

And there's more: Hut 8's not just mining Bitcoin anymore. They're beefing up their computing muscle in Louisiana to tackle AI workloads. It's a hot trend in the mining world, with companies branching out into AI and high-performance computing to weather the storm of shrinking block rewards post-halving.