Fintech PR
Hut 8 Reports Third Quarter 2020 Financial Results
Toronto, Ontario–(Newsfile Corp. – November 12, 2020) – Hut 8 Mining Corp. (TSX: HUT) (OTCQX: HUTMF) (“Hut 8” or “the Company“), a publicly listed bitcoin mining company, today announces its financial results for the third quarter ending September 30, 2020 (“Q3-2020”). Hut 8 reports all amounts in Canadian Dollars unless otherwise stated.
Q3-2020 Highlights
- Quarterly revenue of $5.8 million with mining profit margin of -37%.
- Revaluation gain related to Hut 8’s bitcoin holdings of $5.6 million for the quarter with a bitcoin price at quarter end of US$10,788.
- Net loss of $0.9 million and negative adjusted EBITDA of $2.9 million.
- Renegotiated key terms with lender to provide more downward flexibility with bitcoin collateral and save Hut 8 nearly $500,000 per year in interest expense.
- Hosting revenue of $0.5 million from Hut 8’s first hosting client with 6MW of latest generation bitcoin mining equipment.
- Transferred the management of site operations from Bitfury to Hut 8, providing savings of over $1.5 million per year.
- Made a bitcoin equipment order for 275 PH/s of which 154 PH/s using 6.7MW was installed this quarter with the remainder expected to be installed by the end of 2020.
- Hut 8 became the first company to enter and exit the TSX Sandbox successfully, which solidifies its place as a TSX issuer.
Selected Financial Information
| Three months ended September 30, | Nine months ended September 30, | |||||||||||
| 2020 | 2019 | 2020 | 2019 | |||||||||
| Revenue | $ | 5,754,732 | $ | 26,749,874 | $ | 27,724,292 | $ | 67,132,276 | ||||
| Site operating costs | (7,871,231 | ) | (11,353,029 | ) | (29,120,406 | ) | (34,372,623 | |||||
| Mining profit | (2,116,499 | ) | 15,396,845 | (1,396,114 | ) | 32,759,653 | ||||||
| Mining profit margin | -37% | 58% | -5% | 49% | ||||||||
| Depreciation | (3,545,173 | ) | (8,178,269 | ) | (17,512,599 | ) | (24,534,807 | |||||
| Gross profit | $ | (5,661,672 | ) | $ | 7,218,576 | $ | (18,908,713 | ) | $ | 8,224,846 | ||
| Gross profit margin | -98% | 27% | -68% | 12% | ||||||||
| Expenses | (787,965 | ) | (707,270 | ) | (2,694,002 | ) | (2,090,574 | |||||
| Share-based compensation | (167,743 | ) | (670,136 | ) | 479,892 | (2,427,144 | ||||||
| Gain on use of digital assets | 198,369 | 514,135 | 1,800,984 | 5,433,530 | ||||||||
| Revaluation of digital assets | 5,577,854 | (10,050,642 | ) | 13,713,962 | 8,243,089 | |||||||
| Net operating income (loss) | (841,157 | ) | (3,695,337 | ) | (5,607,877 | ) | 17,383,747 | |||||
| Net finance expense | (567,787 | ) | (1,122,930 | ) | (1,909,354 | ) | (3,512,166 | |||||
| Foreign exchange gain (loss) | 508,606 | (370,374 | ) | (772,714 | ) | 703,347 | ||||||
| Gain on share issuance | – | – | – | 951,059 | ||||||||
| Net income (loss) | $ | (900,338 | ) | $ | (5,188,641 | ) | $ | (8,289,945 | ) | $ | 15,525,987 | |
| Adjusted EBITDA | $ | (2,904,464 | ) | $ | 14,689,575 | $ | (3,548,032 | ) | $ | 30,669,079 | ||
| Adjusted EBITDA margin | -50% | 55% | -13% | 46% | ||||||||
| Net income (loss) per share – basic and diluted |
$ | (0.01 | ) | $ | (0.07 | ) | $ | (0.09 | ) | $ | 0.20 | |
Q3-2020 Overview
Q3-2020 was the first full quarter after the bitcoin halving where bitcoin production was cut in half while the network hash rate continued to rise, making it one of the most difficult periods for bitcoin miners to operate. To put this into context, it became 140% more difficult to mine for a bitcoin from just before the halving in May 2020 to September 30, 2020, while the bitcoin price increased by 9% in that same period. The economics of mining bitcoin have significantly improved subsequent to Q3-2020.
Hut 8 also recognized $0.5 million of hosting revenue after signing up its first client with 6MW of latest generation bitcoin mining equipment. This is a new revenue stream for Hut 8 and provides consistent recurring revenue with its available electrical capacity and existing infrastructure.
Hut 8 has continued to find ways to reduce costs in Q3-2020 through many successful initiatives in the quarter. In July 2020, the Company re-negotiated its credit facility terms with Genesis Global Capital, LLC (“Genesis) and successfully reduced the interest rate from 9.85% to 8.00% per annum saving approximately $500,000 per year.
Another initiative during Q3-2020 was that Hut 8 transferred the Clarke chips from its Drumheller facility to Medicine Hat which brought together Hut 8’s higher efficiency chips with its best electricity pricing at Medicine Hat. Also, Hut 8 completed the transfer of the management of operations of both the Medicine Hat and Drumheller facilities from Bitfury to Hut 8, providing for savings of over $1.5 million per year. With full control over the sites, Hut 8 will continue to streamline operations while maintaining the highest industry standards.
Hut 8’s strategy of mining and holding bitcoin continued to pay off as there was a $5.6 million gain on the re-measurement of bitcoin holdings in Q3-2020. Additionally, by only strategically selling bitcoin at higher prices, Hut 8 recorded a $0.2 million gain on the use of digital assets. Overall, for Q3-2020, Hut 8 recorded a net loss of approximately $0.9 million and a negative Adjusted EBITDA of $2.9 million.
More than halfway through the quarter, Hut 8 completed the installation of 1,000 M31S and 1,000 M31S+ mining equipment at its Medicine Hat facility. The equipment collectively increased Hut 8’s mining power by approximately 154 PH/s using 6.7 MW of power. The remainder of the equipment purchase, which consists of 1,590 M30S units is expected to be shipped late November 2020 and will provide an additional 140 PH/s using approximately 5.3MW.
Hut 8 also achieved a milestone when they became the first company to successfully exit the TSX Sandbox which solidifies Hut 8 as a TSX listed issuer. Hut 8 was also the first issuer to be listed to the TSX via the TSX Sandbox and has been trading on the senior TSX exchange since early October 2019.
This release should be read in conjunction with the Company’s unaudited condensed consolidated interim financial statements and corresponding MD&A for the three and nine months ended September 30, 2020 filed on SEDAR and posted on the Company’s website.
ABOUT HUT 8 MINING CORP.
Hut 8 is a bitcoin mining company with industrial scale operations in Canada. Hut 8 creates value for investors through low production costs and appreciation of its bitcoin inventory. The company provides investors with direct exposure to bitcoin, without the technical complexity or constraints of purchasing the underlying cryptocurrency. Investors avoid the need to create online wallets, wire money offshore, and safely store their bitcoin.
The Company’s common shares are listed under the symbol “HUT” on the TSX and as “HUTMF” on the OTCQX Exchange.
Key investment highlights and FAQ’s: https://www.hut8mining.com/investors.
Keep up-to-date on Hut 8 events and developments and join our online communities at Twitter, Instagram and LinkedIn.
Hut 8 Corporate Contact:
Jimmy Vaiopoulos
Interim Chief Executive Officer
Tel: (647) 256-1992
Email: [email protected]
Non-GAAP Measures
This press release presents certain non-GAAP (“GAAP” refers to Generally Accepted Accounting Principles) financial measures to assist readers in understanding the Company’s performance. These non-GAAP measures do not have any standardized meaning and therefore are unlikely to be comparable to similar measures presented by other issuers and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP. Management uses these non-GAAP measures to supplement the analysis and evaluation of operating performance.
The following terms are used, which are not found in the Chartered Professional Accountants of Canada Handbook and do not have a standardized meaning under GAAP.
EBITDA (Earnings before Interest, Taxes, Depreciation, and Amortization)
- “EBITDA” represents net income or loss excluding net finance income or expense, income tax or recovery, depreciation, and amortization.
- “Adjusted EBITDA” represents EBITDA adjusted to exclude share-based compensation, fair value loss or gain on revaluation of digital assets, write-offs, and costs associated with one-time transactions (such as listing fees).
- “Adjusted EBITDA Margin” represents Adjusted EBITDA as a percentage of revenue.
EBITDA is used to show ongoing profitability without the impact of non-cash accounting policies, capital structure, and taxation. This provides a consistent comparable metric for profitability.
“Mining Profit” represents gross profit (revenue less cost of revenue), excluding depreciation. “Mining Profit Margin” represents Mining Profit as a percentage of revenue. Mining Profit and Mining Profit Margin show the cash expenses against the revenue without the impact of non-cash accounting policies such as depreciation.
FORWARD-LOOKING STATEMENTS
Certain information in this press release constitutes forward-looking information. In some cases, but not necessarily in all cases, forward-looking information can be identified by the use of forward-looking terminology, such as “plans”, “targets”, “expects” or “does not expect”, “is expected”, “estimates”, “intends”, “assumes”, “anticipates” or “does not anticipate” or “believes”, or variations of such words and phrases, or state that certain actions, events or results “may”, “could”, “would”, “might”, “will” or “will be taken”, “occur” or “be achieved”. In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances contain forward-looking information. Statements containing forward-looking information are not historical facts, but instead represent management’s expectations, estimates and projections regarding future events.
Forward-looking information is necessarily based on a number of opinions, assumptions and estimates that, while considered reasonable by Hut 8 as of the date of this press release, are subject to known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information, including but not limited to the factors described in greater detail in the “Risk Factors” section of the Filing Statement dated March 1, 2018 relating to the Qualifying Transaction of Oriana Resources Corporation and Hut 8, which is available at www.sedar.com. These factors are not intended to represent a complete list of the factors that could affect Hut 8; however, these factors should be considered carefully. There can be no assurance that such estimates and assumptions will prove to be correct. The forward-looking statements contained in this press release are made as of the date of this press release, and Hut 8 expressly disclaims any obligation to update or alter statements containing any forward-looking information, or the factors or assumptions underlying them, whether as a result of new information, future events or otherwise, except as required by law.
Neither the TSX nor its Regulation Services Provider (as that term is defined in the policies of the TSX) accepts responsibility for the adequacy or accuracy of this release.
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VILNIUS, Lithuania, Nov. 1, 2024 /PRNewswire/ — BingX, a global leading cryptocurrency exchange, is excited to announce the official launch of Legend of Arcadia‘s ARCA token on the BingX launchpool. This highly anticipated event brings a robust reward pool of 800,000 ARCA, inviting users to stake with USDT and BTC in a campaign that combines accessibility for new users with compelling earning potential for all.
Legend of Arcadia (LOA) is a card-based RPG game built on a vast story universe inspired by Kingdom Hearts. LOA is built with the latest technology for the modern gamer, powered by blockchain. This ARCA Launchpool campaign will run for a limited time and participants will have the chance to join three staking pools, one of which is an exclusive newcomer pool for USDT, featuring a capped staking limit of 2,000 USDT and offering 35% of the total reward pool. There is also an additional USDT pool and BTC pool, open to all users. To further amplify rewards, users can participate in an ARCA staking event, maximizing opportunities for participants during this limited-time campaign.
Vivien Lin, Chief Product Officer of BingX, highlighted this launch as an exciting addition to BingX’s expanding GameFi offerings. “The ARCA launch on BingX Launchpool introduces our community to an immersive GameFi experience, where blockchain rewards meet engaging gameplay,” Lin remarked. “The game showcases the type of high-value, innovative GameFi projects we would like to support. We are glad to see a new attempt for sustainable web3 gaming.”
BingX Launchpool offers a user-friendly design for a seamless staking experience, featuring flexible staking and withdrawal options that let users deposit or withdraw assets anytime during the campaign. Rewards are automatically calculated hourly and distributed directly to users’ accounts, with all assets returned upon the campaign’s end. This streamlined process makes staking with BingX Launchpool simple and efficient from start to finish.
BingX Launchpool’s introduction of the ARCA token serves as a bridge, connecting innovative project teams like Legend of Arcadia with a global user base eager for fresh opportunities in the GameFi space. By offering a platform that amplifies visibility and engagement, BingX empowers projects to reach new audiences while enabling users to participate in blockchain-driven experiences. This collaboration highlights BingX’s dedication to enriching its ecosystem, delivering added value to users, and supporting the ongoing evolution of Web3 gaming.
About BingX
Founded in 2018, BingX is a leading crypto exchange, serving over 10 million users worldwide. BingX offers diversified products and services, including spot, derivatives, copy trading, and asset management – all designed for the evolving needs of users, from beginners to professionals. BingX is committed to providing a trustworthy platform that empowers users with innovative tools and features to elevate their trading proficiency. In 2024, BingX proudly became the official crypto exchange partner of Chelsea Football Club, marking an exciting debut in the world of sports.
For more information please visit: https://bingx.com/
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DUBLIN, Nov. 1, 2024 /PRNewswire/ — Aon plc (NYSE: AON), a leading global professional services firm, today announced the signing of a definitive agreement to acquire UK-based insurance broker Griffiths & Armour. Upon completion of the transaction, Griffiths & Armour will become wholly-owned by Aon UK Limited and is proposed to go to market as “Griffiths & Armour, an Aon company”.
The acquisition closely aligns with Aon’s strategy to further expand its presence in the UK and Ireland. The combination will provide a greater breadth of solutions for clients across both Aon and Griffiths & Armour with complementary strengths that create a platform for further growth in the UK, Ireland and beyond. Together, Aon and Griffiths & Armour share a strong cultural alignment through an unwavering focus on clients and colleagues.
“As we continue to go further, faster to help our clients navigate growing uncertainty and volatility, we are looking forward to welcoming Griffiths & Armour to Aon,” said Greg Case, CEO of Aon. “Our complementary capabilities and cultures will create unmatched client and colleague experiences across the UK and Ireland and contribute to our global 3×3 Plan to accelerate our Aon United strategy.”
Griffiths & Armour has established a market-leading presence from their base in the north of England as well as a strong national and international reputation. With around 200 employees, Griffiths & Armour are known for their specialist expertise in professional indemnity insurance and strength in general insurance broking. As part of the acquisition, Aon is committed to Griffiths & Armour’s Liverpool office at Princes Dock and its strong team in Liverpool, Manchester, Dublin and London.
Carl Evans, CEO of Professional Risks for Griffiths & Armour, commented; “Becoming part of the Aon family is the result of a meticulous search for a trusted partner with whom we can work, to ensure the future success of Griffiths & Armour and to enable us to enhance, grow and expand our unique client proposition. This proposition is founded on a culture that has been created and refined over the last 90 years, of which we are immensely proud.”
Matt Donnelly, CEO of General Insurance for Griffiths & Armour, added; “We have long-regarded Aon for its professionalism and client service excellence. In them we have found a partner who will not only help deliver continued growth, but also preserve and embrace the culture that we and our client community hold dear. We very much look forward to this next chapter.”
“Griffiths & Armour is a brilliant business and will bring quality, expertise and an exceptional platform for growth to our firm,” said Jane Kielty, UK CEO at Aon. “We’re very excited to work with the leadership team to deliver the fantastic results for clients and colleagues that we passionately believe will be created by joining together.”
Closing of the transaction is subject to customary conditions, including regulatory approvals, and is expected to occur in the first quarter of 2025. Aon and Griffiths & Armour will continue to operate independently until the closing date.
About Aon
Aon plc (NYSE: AON) exists to shape decisions for the better — to protect and enrich the lives of people around the world. Through actionable analytic insight, globally integrated Risk Capital and Human Capital expertise, and locally relevant solutions, our colleagues provide clients in over 120 countries with the clarity and confidence to make better risk and people decisions that protect and grow their businesses.
Follow Aon on LinkedIn, X, Facebook and Instagram. Stay up-to-date by visiting Aon’s newsroom and sign up for news alerts here.
About Griffiths & Armour
Griffiths & Armour are a consulting insurance broker providing clarity and protection for business leaders. We exist to make our clients’ worlds less complicated by minimising risk. We work across a range of sectors by combining deep market insight, long-term relationships, and end-to-end support to manage and minimise professional and business risk, as well as offering private client support to protect individuals’ most important personal assets.
Media Contacts
Aon
[email protected]
Toll-free (U.S., Canada and Puerto Rico): +1 833 751 8114
International: +1 312 381 3024
Griffiths & Armour
[email protected]
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Fintech PR
Bybit Protects First-Time Copy Traders Against Potential Fiat Losses in Limited-Time Offer
DUBAI, UAE, Nov. 1, 2024 /PRNewswire/ — Bybit, the world’s second-largest cryptocurrency exchange by trading volume, has introduced new fiat protection for trading novices to counter potential market risks. First-time depositors may enroll to protect their investment in Bybit’s Fiat Loss Coverage Frenzy campaign this season.
From now to Dec. 1, 2024, Bybit is offering up to 100 USDT in Fiat Loss Coverage Vouchers (“the Voucher”) for as little as 100 USDT in first-time trading. Users making a first-time deposit and lured by the power of Copy Trading may sign up for the exclusive event for a confidence boost as well as potential capital protection.
The generous offer is available for eligible users only and the number of Vouchers is limited. Users may follow three simple steps to seize an opportunity to minimize their risk of asset devaluation:
- Deposit: Users making a first-time deposit of at least 100 USDT in any currency via Bybit P2P, Fiat Deposit or One-Click Buy
- Claim the Voucher: Access the “Claim” button at the Bybit Copy Trading page for up to 100 USDT in Fiat loss coverage
- Explore Copy Trading: Choose the first Master Trader wisely and execute the first copy trade in the amount of at least 100 USDT in either Smart Copy Mode or Advanced Copy Mode. Should the trade result in a loss, holders of the Voucher will be reimbursed up to the Voucher value.
Fiat and crypto solutions on Bybit come with copious benefits and rewards, including innovative mechanisms to enhance Bybit’s protection of users’ interests. The exchange is also trusted for its deep liquidity and tried-and-tested reliability, 24/7 customer support, and diversity of products and solutions.
“Investing comes with risks, and for retail investors starting to diversify into crypto, we’ve got their back. This campaign is a gesture of support and an invitation into the world of digital assets for new users, and Bybit serves to take away some of the stress for a better trading experience,” said Joan Han, Sales and Marketing Director at Bybit. “I hope it offers extra protection for new traders as they embark on their journey,” she added.
Visit Bybit Fiat and explore Bybit Copy Trade for more information, terms and conditions apply.
#Bybit / #TheCryptoArk
About Bybit
Bybit is the world’s second-largest cryptocurrency exchange by trading volume, serving over 50 million users. Established in 2018, Bybit provides a professional platform where crypto investors and traders can find an ultra-fast matching engine, 24/7 customer service, and multilingual community support. Bybit is a proud partner of Formula One’s reigning Constructors’ and Drivers’ champions: the Oracle Red Bull Racing team.
For more details about Bybit, please visit Bybit Press.
For media inquiries, please contact: [email protected]
For more information, please visit: https://www.bybit.com
For updates, please follow: Bybit’s Communities and Social Media
Discord | Facebook | Instagram | LinkedIn | Reddit | Telegram | TikTok | X | Youtube
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