Crypto Quill

Bitcoin’s continued ascent to new record highs in the aftermath of the 2024 U.S. elections has had a significant impact on the mining sector. As the cryptocurrency reached a record price of $93,445, bitcoin miners released their quarterly results this week, showcasing mixed financial outcomes. While some companies like Hut 8 reported strong earnings, others like MARA Holdings missed expectations, reflecting the volatility inherent in the market.

Hut 8 Posts Strong Earnings Amid Bitcoin Rally

Hut 8 Mining (HUT) posted better-than-expected results, reporting earnings of $0.01 per share, a significant improvement from a loss of $0.10 per share during the same period last year. Revenue surged by 101% to $43.74 million, far surpassing analysts’ projections of a $34.6 million figure. The company mined 234 bitcoins during the quarter, with an average revenue of $61,025 per coin, against a mining cost of $31,482.

In addition to its bitcoin mining operations, Hut 8 launched a new venture, GPU-as-a-Service through its subsidiary Highrise AI. This move positions the company to tap into the growing artificial intelligence market, with a five-year agreement with an AI cloud services provider already in place. CEO Asher Genoot highlighted that the company’s development pipeline includes several large-scale AI data center projects, with over 430 megawatts of capacity expected to be available by 2025.

Hut 8’s stock surged 3.9% on Wednesday, extending its 86% rally this year, demonstrating investor confidence in the company’s diversification and growth strategy.

HIVE Digital’s Mixed Performance

HIVE Digital (HIVE) reported an improved loss of $0.06 per share, up from $0.29 per share a year ago, which was better than the analyst expectations of a $0.09 per share loss. However, the company’s revenue of $22.65 million was slightly below expectations of $25 million, reflecting a 0.5% decline from the previous year.

A deeper look at the company’s revenue sources reveals that its digital currency mining revenue decreased by 7.8% to $20.77 million, while its revenue from high-performance computing services grew significantly, reaching $1.88 million—up from just $253,000 in the previous year.

Despite the mixed results, HIVE Digital’s stock fell by almost 11% on Wednesday after an initial morning uptick. However, shares are up 3% year-to-date, indicating some optimism in the market.

MARA Holdings Faces Losses Amid Strong Bitcoin Acquisition

MARA Holdings (MARA) reported a loss of $0.42 per share, a wider loss compared to $0.34 per share from the previous year. This loss was steeper than analysts’ expected $0.26 per share loss. Despite 35% growth in revenue to $131.6 million, the company missed analysts’ expectations of $140.3 million.

MARA’s mining output was substantial, with 2,070 bitcoins mined during the quarter, and an additional 6,210 bitcoins purchased. The company acquired 4,144 bitcoins using proceeds from a $300 million convertible note offering, purchasing at an average price of $59,500 per bitcoin.

Despite the company’s robust bitcoin holdings of 26,747 bitcoins and a 7% increase in its mining fleet, MARA’s stock fell 14% on Wednesday, continuing a slide from earlier in the year. Shares have dropped by almost 8% in 2024, a stark contrast to the company’s strong rally earlier in the week when bitcoin hit new highs.