Crypto mining firm Hut 8 have reported their Q1 2020 Financial results in line with the BTC halving event that was triggered yesterday night after the 630000th block was mined. Their posted results have indicated gradual dwindling revenues the crypto miners have experienced.

Amid global pandemic concerns Canadian based Hut 8 financial results show a trend that has extended well into their 3rd consecutive quarter. For the time between the beginning of the year 2020 to the end of March, they managed to mine 1,116 Bitcoin which generated approximately CAD 12.7 million translating to US$9.1 million a 14% drop in revenue.

They attributed this to the low number of BTC mined due to increased BTC mining difficulty. Their operational overheads also spiked significantly (CAD 12.6 million Q1 2020 from CAD 11.1 million Q4 2019) mostly because of the cold weather that results to higher electricity fees.

They have also projected further losses post halving if the BTC doesn’t appreciate as with the previous halvings. The fact that miner rewards have been trimmed by half (12.5 – 6.25 BTC) and a flat Network hash rate could cut their revenue by half.

However, the top brass is confident that there will be reduced competition in the foreseeable future as small scale miners are set to close shop as they risk not being profitable.

Revenue streams recorded from the sales of the mined BTC were used to service their operating expenses. Notably, they only held 3000 BTC at the end of March, estimated at CAD 36 million ($ 26 million) at the time of this writing.

They managed to finance their loan with Bitfury which was facilitated by an additional loan from CAD 7 million loans from Genesis. This is the second loan secured from Genesis (first of CAD 21 million) which features a shorter refund timeline and higher collateral. This has locked up to 94% of their current BTC holdings.

The reduction of their revenues is a sharp contrast to the impressive returns they recorded in Q2 2019. They saw a 250% increase to $28.3 million with their CEO at the time, Andrew Kiguel remarking it was the best quarterly revenue they had ever posted since their launch.

Andrew Kiguel has since been replaced current interim CEO Jimmy Vaiopoulos formerly the firm’s CFO whose position has now been filled by Kyle Appleby.

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