Hut 8's Q2 Performance Breakdown: A Return To Near Bitcoin All-Time High Required To Justify Valuation

One of the main highlights of HUT's Q2 Earnings is the 50% increase in operating cost due to higher power cost, which results in 30% increase in all-in business cost.We certainly did not expect the increase in inefficiency in the energy department as the Canadian Electricity Price Index was stable in Q2.We make the case that HUT continues to dilute investors in Q2 to raise enough cash to repay its liabilities and cover operating expenses.The inefficiency resulted in difficulty to justify HUT's current valuation where a near all-time high Bitcoin price is required.IntroductionHere's our verdict on our previous coverage: Hut 8 Mining (HUT) is expanding and operating at the expense of shareholders' claim of profits (dilution) to continue its commitment to the 100% HODL strategy. As a result, HUT increased its outstanding shares by more than 85% since the beginning of 2021. HUT is one of the most inefficient Bitcoin (BTC-USD) mining companies. HUT's investment value proposition lies in its hard assets being worth more than its market cap. HUT's recently released Q2 quarterly report cements our thesis while taking a turn for the worse. There's a lot to unpack. Therefore, this article aims to break down HUT's Q2 performance in a comprehensive and quantifiable manner.Adding inefficiency to existing inefficienciesHUT operates solely in Canada. According to the Canadian Electric Power Selling Price Index, energy cost remains relatively...