Hut 8 Posts Record Quarterly Loss Amid Crypto Volatility

Hut 8 Corp., a major Bitcoin miner, reported a significant quarterly loss due to the volatility of digital assets. The company's net loss came in at $301.8 million for the fourth quarter, compared to a net income of $152.0 million in the same period last year.

The major contributor to Hut 8's quarterly loss was a $401.9 million hit from mostly unrealized losses on digital assets. This is a stark contrast to the previous year's quarter, which saw $308.2 million in unrealized gains.

Despite the significant loss, Hut 8 did report an increase in revenue, with $88.5 million in the fourth quarter, up from $31.7 million in the same period last year. Most of this revenue came from Compute operations, which generated $81.9 million. Adjusted EBITDA was negative $347.8 million, down from positive $310.6 million in the same period last year.

Bitcoin's underperformance over the past four months has had a significant impact on Hut 8's results, with February following suit. Bitcoin traded around $65,800, up by 4% in the last 24 hours.