Cryptocurrency mining firm Hut 8 increased its hashrate by 79% during the first quarter of the year.

According to Hut8’s latest quarterly report released on May 8, the firm saw a net loss of $134.3 million despite revenue of $21.8 million. The firm’s CEO, Asher Genoot, explained that this was a result of large-scale investments.

“As reflected in our results, the first quarter was a deliberate and necessary phase of investment,” Genoot said. “We believe the returns on this work will become increasingly visible in the quarters ahead.”

Hut 8 operations reached a total energy capacity of 1,020 megawatts as of March 31, enough to power well over 800,000 average homes in the United States. The company also has the right to scale up its operation by another 2,600 MW.

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Hut 8 is scaling up operations

Genoot said the financial results follow large-scale investments by Hut 8, including upgrading the firm’s application-specific integrated circuit (ASIC) fleet and launching the majority-owned subsidiary of Hut 8, American Bitcoin.

American Bitcoin was announced at the end of March, with several members of the US President Donald Trump’s family as partners. According to the announcement, the new venture “aims to become the world’s largest, most efficient pure-play Bitcoin miner while building a robust strategic Bitcoin reserve.”

Early April reports also revealed that American Bitcoin has plans to raise additional capital, including through an initial public offering. In today’s quarterly earnings announcement, Genoot stated:

“The streamlined capital allocation framework made possible by the American Bitcoin launch reinforces our ability to scale lower-cost-of-capital businesses such as high-performance computing.“

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Future expansion plans

Talking about future plans, Hut 8’s CEO noted that the company is pushing ahead with its plans for 2025. Those include the energization of the Vega data center, the initial sitework at the River Bend data center and the development of the firm’s utility-scale power portfolio. Genoot added:

“We believe these initiatives will further accelerate our ability to generate resilient near-term cash flows while building toward enduring leadership across next-generation digital infrastructure markets.”

Hut 8 stock is trading at $12.66 after seeing a 2.2% increase on the trading day on the Nasdaq. However, it is down by over 38% from $20.49 at the start of the year.

Hut8 year-to-date price chart. Source: Google Finance

The announcement follows Nasdaq-listed Bitcoin (BTC) mining firm Core Scientific posting a net profit of $580 million in its first quarter results, missing analyst revenue estimates after a drop in its mining profits.

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