Crypto miner Hut 8 hits record highs, BTC reserves surge 100%

Canadian crypto miner Hut 8 reported its financial results on Thursday, with revenue and mining margins surging. The financial results were not all positive, however, as the bitcoin miner suffered an unexpected loss in the fourth quarter.

Canadian crypto miner Hut 8 reported mixed financial results on Thursday, with revenue and mining margins surging while overall net income fell — underscoring the volatility of Bitcoin (BTC) and the broader digital asset market at the end of the year.

The Toronto-based company, which trades on Nasdaq and the TSX, saw revenue surge to $45.69 million (C$57.901 million) in the fourth quarter of 2021, up from $10.25 million (C$12.986 million) in the previous year Canadian dollar). Full-year revenue was $137.1 million, an increase of 326% compared to 2020.

The company posted an overall loss of $0.53 (C$0.67) per share in the fourth quarter, despite the massive profits generated by the mining activity. The full-year 2021 loss came to $0.43 (C$0.54) per share.

Shares of Hut 8 traded in a narrow range on Thursday under the ticker HUT. The stock was last traded at $5.23, according to TradingView.

Over the past 12 months, HUT has behaved very much like a cryptocurrency proxy stock as it moves closely with Bitcoin and the broader digital asset market. In early November, HUT peaked near $16 when Bitcoin made a new all-time high north of $69,000.

In its quarterly earnings report, Hut 8 disclosed that it mined 2,786 BTC in 2021, bringing its total holdings to over 6,200 BTC. Its bitcoin reserves are now worth more than $254 million at current prices.

Only five other public companies hold more bitcoin than the Canadian miner. MicroStrategy, Tesla, Marathon Digital Holdings, and Block (formerly Square).