Hut 8 Mining Corp. (NASDAQ:HUT) Q3 2022 Earnings Conference Call November 10, 2022 10:00 AM ET
Company Participants
Jaime Leverton – Chief Executive Officer
Shane Downey – Chief Financial Officer
Conference Call Participants
Joseph Vafi – Canaccord Genuity
Gus Gala – Truist
Bill Papanastasiou – Stifel
Chris Brendler – D.A. Davidson
Kevin Dede – HCW
Operator
Welcome to the Hut 8’s Third Quarter Analysts and Investor Call. In addition to the press release issued earlier today, you can find Hut 8’s financial statements and MD&A on the Company’s website at www.hut8mining.com under the Company’s SEDAR profile at www.sedar.com, and under the Company’s EDGAR profile at www.sec.com and under the Company’s EDGAR profile at www.sec.gov.
Unless noted otherwise, all amounts referred to during this call are denominated in Canadian dollars.
Any comments during this call may include forward-looking statements within the meaning of the applicable securities legislation regarding the future performance of Hut 8’s Mining Corp. and its subsidiaries. The statements reflect current expectations and as such, are subject to a variety of risks and uncertainties that could cause actual results to differ materially from current expectations. These risks and uncertainties include, but are not limited to, the factors discussed in the quarterly MD&A for the quarter ended September 30, 2022, as well as the company's MD&A and annual information form for the year ended December 31, 2021.
I would now like to turn the call over to Hut 8’s CEO, Jaime Leverton. Please go ahead.
Jaime Leverton
Thanks so much, Karlen. Good morning everyone, and thank you for joining us to discuss Hut 8's financial results for the third quarter of the year. The industry continues to face challenging headwinds, fluctuating energy prices, and increasing global hash rate, the Ethereum merge and Bitcoin now in its fifth month of hovering around the US$20,000 range. With the benefit of hindsight, it's clear that we were prescient in taking a balance sheet first approach, which has allowed us to continue operating thoughtfully and strategically. Throughout the quarter we remained focused on optimizing operations for both our mining and high performance computing businesses. We were successful in reducing our cost per coin by nearly 30% over the second quarter, and installed an aggregate of 2,205 new miners at our mining sites during Q3, bringing our operating capacity to 3.07 exahash, which is a 10% improvement over Q2.
In our HPC business we completed re renovations and upgrades to our flagship data center in Kelowna, British Columbia, and generated $4.4 million in revenue, comprised primarily of monthly recurring revenue from a number of client segments, including the Blockchain and emerging technology industry.