UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

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FORM 6-K

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REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16

UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the month of August, 2022

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Commission File Number: 001-40487

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HUT 8 MINING CORP.

(Exact Name of Registrant as Specified in Its Charter)

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24 Duncan Street, Suite 500, Toronto, Ontario, M5V 2B8

 (Address of principal executive offices)

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Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F   ☐            Form 40-F  ☒

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):  ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):  ☐

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Exhibits

 

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Date: August 11, 2022

Hut 8 Reports Operating and Financial Results for Q2 2022

Strong quarterly revenue of $43.8 million

 

Bitcoin holdings increased 14.6% to 7,406 in Q2

 

Achieved adjusted EBITDA⁽ⁱ⁾ of $6.8 million

TORONTO, ON, August 11, 2022 -- Hut 8 Mining Corp. (Nasdaq | TSX: HUT), ("Hut 8" or the "Company") one of North America's largest, innovation-focused digital asset mining pioneers and high performance computing infrastructure provider, is pleased to announce its financial results for the quarter ended June 30, 2022. All dollar figures are in Canadian Dollars (“CAD”), unless otherwise stated.

“We have been anticipating market volatility for nearly a year and took proactive measures to successfully navigate the current downturn through the balance of the cycle,” said Jaime Leverton, CEO of Hut 8. “Our continued growth in digital asset mining operations and in our Bitcoin reserves, coupled with our first full quarter generating uncorrelated fiat revenue in our high performance computing business, has positioned us well to drive future success.”

“Our operational orientation and conservative, balance sheet first approach, continued to serve us well in the second quarter,” said Shane Downey, CFO of Hut 8. “We generated strong revenue in our digital asset mining business, made strides in solidifying and growing our high performance computing business and remain focused on the continued health of the company overall.”

Q2 2022 HIGHLIGHTS

⁽ⁱ⁾ EBITDA, Adjusted EBITDA and mining profit are non-IFRS performance measures; refer to the Non-IFRS Measures section of this press release.

FINANCIAL SUMMARY

Revenue for Q2 2022, was $43.8 million compared to $33.5 million in Q2 2021. The increase was primarily driven by the Company’s digital asset mining operations, where the Company mined 946 Bitcoin and generated $39.1 million of revenue, versus 553 Bitcoin mined and $31.4 million of revenue in Q2 2021. The increase in Bitcoin mined is due to the significant increase in Hut 8’s average hashrate stemming from the expansion of the Company’s highly efficient mining fleet and ramp-up activities of the Company’s new site in North Bay, Ontario. The Company’s newly-acquired high performance computing operations generated $4.7 million of primarily recurring revenue in the quarter.

Net loss for Q2 2022 was $88.1 million and net loss per share was $0.49, compared to net loss of $4.0 million and net loss per share of $0.03 for the same period in 2021. The change reflects the non-cash revaluation loss on digital assets, partially offset by higher revenue and the non-cash revaluation gain on warrants liability.

Mining profit⁽ⁱ⁾ was $14.9 million in Q2 2022, compared to $19.3 million in Q2 2021. The change is mainly due to a lower average Bitcoin price and increased average power costs, which were partially offset by the revenue associated with the higher number of Bitcoin mined.

Adjusted EBITDA⁽ⁱ⁾ was $6.8 million, compared to $14.4 million in Q2 2021. Increased revenues from mining operations and contributions from high performance computing operations were offset by compressed mining margins due to lower average Bitcoin price and higher general and administrative expenses incurred to support the growth in Hut 8’s mining and high performance computing operations.

Cost of revenue consists of site operating costs and depreciation and was $47.7 million for Q2 2022 compared to $16.6 million in Q2 2021. Site operating costs for the quarter ended June 30, 2022, was $26.8 million, of which $24.5 million was attributable to our mining operations and $2.3 million to our high performance computing operations. The average cost of mining each Bitcoin for Q2 2022 was approximately $25,900, compared to approximately $24,700 per Bitcoin in Q2 2021. The increase in average cost of mining Bitcoin was primarily due to higher power prices, partially offset by the deployment of a more efficient mining fleet. Depreciation expense increased to $20.9 million during Q2 2022 compared to $3.0 million in Q1 2021, driven by the significant deployment of new mining equipment over the past twelve months as well as $1.3 million of additional depreciation from our newly acquired high performance computing operations.

For more information, please refer to the Management’s Discussion & Analysis and the unaudited condensed interim consolidated financial statements of the Company for the three and six months ended June 30, 2022 and 2021. These documents will be available 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.gov.

NON-IFRS MEASURES

This press release makes reference to certain measures that are not recognized under IFRS and do not have a standardized meaning prescribed by IFRS. They are therefore not necessarily comparable to similar measures presented by other companies. The Company uses non-IFRS measures including "Adjusted EBITDA" and “Mining profit” as additional information to complement IFRS measures by providing further understanding of the Company’s results of operations from Management’s perspective and should not be viewed as alternatives to, or replacements of, measures of operating results and liquidity presented in accordance with IFRS.

The following tables and definitions reconcile non-IFRS measures used by the Company to analyze the operational performance of Hut 8, to their nearest IFRS measure and should be read in conjunction with the unaudited condensed consolidated interim financial statements for the three and six months ended June 30, 2022 and 2021.

Mining Profit

“Mining profit” represents gross profit (revenue less cost of revenue), excluding depreciation and revenue and site operating costs directly attributable to hosting services and high performance computing operations. Mining profit shows profitability of the Company’s core digital asset mining operation, without the impact of non-cash depreciation expense. Mining profit measure provides the investors the ability to assess the profitability of the mining operations exclusive of general and administrative expenses.

The following table reconciles Gross profit to our non-IFRS measure, Mining profit:

Adjusted EBITDA

“Adjusted EBITDA” represents EBITDA (net income or loss excluding net finance income or expense, income tax or recovery, depreciation, and amortization) adjusted to exclude non-cash share-based compensation, fair value gain or loss on revaluation of digital assets and warrants, non-recurring impairment charges or reversals of impairment, and costs associated with one-time or non-recurring transactions. Adjusted EBITDA is used to assess profitability without the impact of non-cash accounting policies, capital structure and one-time or non-recurring transactions. This performance measure provides a consistent comparable metric for profitability of the Company across time periods.

The following table reconciles net income (loss) to our non-IFRS measure, adjusted EBITDA:

CORPORATE UPDATES

Hut 8 anticipates that based on the current installed hashrate and scheduled deliveries of new miners, the Company will reach 3.55 EH/s organically by the end of 2022.

As part of the Company’s ongoing integration of the recently acquired high performance computing operations, Hut 8 rationalized certain low-margin product and service offerings during the second quarter. Hut 8 believes these improvements will better position the Company to realize profitable revenue growth in 2023. As a result, the Company has withdrawn the revenue growth guidance provided in its Q1 2022 results.

CONFERENCE CALL

Hut 8’s Q2 2022 conference call will begin at 10 a.m. ET on August 11, 2022. Those wishing to join via telephone should dial in 5 minutes early:

ANALYST COVERAGE OF HUT 8 MINING

A full list of Hut 8 Mining analyst coverage can be found here.

FORWARD-LOOKING INFORMATION

This press release includes "forward-looking information" and "forward-looking statements" within the meaning of Canadian securities laws and United States securities laws, respectively (collectively, "forward-looking information"). All information, other than statements of historical facts, included in this press release that address activities, events or developments that the Company expects or anticipates will or may occur in the future, including such things as future business strategy, competitive strengths, goals, expansion and growth of the Company’s businesses, operations, plans and other such matters is forward-looking information. Forward-looking information is often identified by the words "may", "would", "could", "should", "will", "intend", "plan", "anticipate", "believe", "estimate", "expect" or similar expressions. In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances contain forward-looking information. Specifically, such forward-looking information included in this press release include, but are not limited to, statements with respect to the following: the Company’s position and ability to seize opportunities in the digital asset industry; the Company’s ability to advance the HODL strategy in the long-term; the Company’s growth strategy; estimates of increased recurring revenue from the Company’s high-performance computing business and the amount thereof; the Company’s estimated margins of the high performance computing business and its ability to optimize margins in the future; expectations for other economic, business, regulatory and/or competitive factors related to the Company or the Bitcoin industry generally; and projected hash rate, expenses and profitability.

 

Statements containing forward-looking information are not historical facts, but instead represent management’s expectations, estimates and projections regarding future events based on certain material factors and assumptions at the time the statement was made. Material assumptions include: assumptions regarding the level of demand and financial performance of the digital asset industry, effective tax rates, the U.S./Canadian dollar exchange rate, the expected impact of the COVID-19 pandemic, inflation, access to capital, timing and receipt of regulatory approvals, acquisition and divestiture activities, operational expenses, returns on investments, transaction costs and fluctuations in energy prices and the Company's energy requirements.

 

Forward-looking information is necessarily based on a number of opinions, assumptions and estimates that, while considered reasonable by Hut 8 as of the date of this press release, are subject to known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information, including but not limited to security and cybersecurity threats and hacks, malicious actors or botnet obtaining control of processing power on the Bitcoin network, further development and acceptance of the Bitcoin network, changes to Bitcoin mining difficulty, loss or destruction of private keys, increases in fees for recording transactions in the Blockchain, erroneous transactions, reliance on a limited number of key employees, reliance on third party mining pool service providers, regulatory changes, classification and tax changes, momentum pricing risk, fraud and failure related to digital asset exchanges, difficulty in obtaining banking services and financing, difficulty in obtaining insurance, permits and licenses, internet and power disruptions, geopolitical events, uncertainty in the development of cryptographic and algorithmic protocols, uncertainty about the acceptance or widespread use of digital assets, failure to anticipate technology innovations, the COVID19 pandemic, climate change, currency risk, lending risk and recovery of potential losses, litigation risk, business integration risk, changes in market demand, changes in network and infrastructure, system interruption, changes in leasing arrangements, counterparty risk, failure to achieve intended benefits of power purchase agreements, including securing full power benefits at current sites, the ability to implement business plans, forecasts, and other expectations, and identify and realize additional opportunities and other risks related to the digital asset mining and data centre business. For a complete list of the factors that could affect the Company, please see the "Risk Factors" section of the Company's Annual Information Form dated March 17, 2022 and Hut 8’s other continuous disclosure documents which are available on 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.gov.

These factors are not intended to represent a complete list of the factors that could affect Hut 8; however, these factors should be considered carefully. There can be no assurance that such estimates and assumptions will prove to be correct. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results may vary materially from those described in this press release as intended, planned, anticipated, believed, sought, proposed, estimated, forecasted, expected, projected or targeted and such forward-looking statements included in this press release should not be unduly relied upon. The impact of any one assumption, risk, uncertainty, or other factor on a particular forward-looking statement cannot be determined with certainty because they are interdependent and Hut 8’s future decisions and actions will depend on management’s assessment of all information at the relevant time. The forward-looking statements contained in this press release are made as of the date of this press release, and Hut 8 expressly disclaims any obligation to update or alter statements containing any forward-looking information, or the factors or assumptions underlying them, whether as a result of new information, future events or otherwise, except as required by law.

About Hut 8

 

Hut 8 is one of North America’s largest innovation-focused digital asset miners, led by a team of business-building technologists, bullish on bitcoin, blockchain, Web 3.0 and bridging the nascent and traditional high performance computing worlds. With two digital asset mining sites located in Southern Alberta and a third site in North Bay, Ontario, all located in Canada, Hut 8 has one of the highest capacity rates in the industry and one of the highest inventories of self-mined Bitcoin of any digital asset miner or publicly-traded company globally. With 36,000 square feet of geo-diverse data centre space and cloud capacity connected to electrical grids powered by significant renewables and emission-free resources, Hut 8 is revolutionizing conventional assets to create the first hybrid data centre model that serves both the traditional high performance compute (Web 2.0) and nascent digital asset computing sectors, blockchain gaming, and Web 3.0. Hut 8 was the first Canadian digital asset miner to list on the Nasdaq Global Select Market. Through innovation, imagination, and passion, Hut 8 is helping to define the digital asset revolution to create value and positive impacts for its shareholders and generations to come.

Investor contact:

Sue Ennis

Media contact:

Erin Dermer

As at		Note				June 30, 2022				December 31, 2021
Assets
Current assets
Cash						$	60,132			$	140,127
Accounts receivable and other							2,927				647
Digital assets			6				188,812				323,946
Deposits and prepaid expenses			5				3,095				3,359
							254,966				468,079
Non-current assets
Plant and equipment			7				194,793				96,126
Deposits and prepaid expenses			5				109,531				156,504
Intangible assets and goodwill			8				13,578				-
Total assets						$	572,868			$	720,709
Liabilities and shareholders’ equity
Current liabilities
Accounts payable and accrued liabilities						$	12,180			$	9,570
Lease liabilities							1,423				216
Loans payable			9				10,423				16,278
							24,026				26,064
Non-current liabilities
Lease liabilities							18,556				427
Loans payable			9				19,403				23,773
Warrants liability							1,600				99,021
Deferred tax liabilities							–				5,456
Total liabilities							63,585				154,741
Shareholders’ equity
Share capital			10				714,461				636,597
Warrants							2,122				2,163
Contributed surplus							13,319				11,928
Accumulated deficit							(220,619	)			(188,260	)
AOCI - Unrealized gain on bitcoin revaluation							-				103,540
Total shareholder’s equity							509,283				565,968
Total liabilities and shareholders’ equity						$	572,868			$	720,709

For the six months ended		Number of shares				Share capital				Warrants				Contributed surplus				Accumulated deficit				Accumulated other comprehensive income (loss)				Total
Balance, December 31, 2021			169,590,061			$	636,597			$	2,163			$	11,928			$	(188,260	)		$	103,540			$	565,968
Net loss			–				–				–				–				(32,359	)			–				(32,359	)
Other comprehensive loss			–				–				–				–				–				(103,540	)			(103,540	)
Comprehensive income			–				–				–				–				(32,359	)			(103,540	)			(135,899	)
Other equity movements
Shares issued for equity raises			22,098,392				75,905				–				–				–				–				75,905
Shares issued on vesting of RSU			287,986				1,345				–				(1,345	)			–				–				–
Shares issued on vesting of DSU			76,296				574				–				(574	)			–				–				–
Shares issued under employee stock purchase plan			6,392				26				–				–				–				–				26
Shares issued on exercise of warrants			863				3				(2	)			–				–				–				1
Shares issued on exercise of options			3,333				11				–				(5	)			–				–				6
Expiry of broker warrants			–				–				(39	)			39				–				–				–
Share based payments			–				–				–				3,276				–				–				3,276
Balance, June 30, 2022			192,063,323			$	714,461			$	2,122			$	13,319			$	(220,619	)		$	–			$	509,283

For the six months ended		Number of shares				Share capital				Shares to be issued				Warrants				Contributed surplus				Accumulated deficit				Accumulated other comprehensive income				Total
Balance, December 31, 2020			97,245,223			$	178,231			$	398			$	2,560			$	4,234			$	(115,549	)		$	45,681			$	115,555
Net income			–				–				–				–				–				15,094				–				15,094
Other comprehensive income			–				–				–				–				–				–				2,534				2,534
Comprehensive income			–				–				–				–				–				15,094				2,534				17,628
Other equity movements
Shares issued for equity raises			38,500,000				130,219				–				49,814				–				–				–				180,033
Shares issued on vesting of RSU			304,813				853				–				–				(853	)			–				–				–
Shares issued on vesting of DSU			42,500				53				–				–				(53	)			–				–				–
Share based payments withholding			–				–				–				–				(729	)			–				–				(729	)
Shares issued on exercise of options			170,639				1,207				–				–				(484	)			–				–				723
Shares issued on exercise of warrants			6,631,062				38,444				–				(7,837	)			–				–				–				30,607
Shares issued on settlement of accounts payable			380,000				398				(398	)			–				–				–				–				–
Share based payments			–				–				–				–				4,524				–				–				4,524
Balance, June 30, 2021			143,274,237			$	349,405			$	–			$	44,537			$	6,639			$	(100,455	)		$	48,215			$	348,341

For the six months ended June 30		2022				2021
Cash provided by (used in):
Operating activities:
Net (loss) income		$	(32,359	)		$	15,094
Change in non-cash operating items:
Digital assets mined			(88,426	)			(61,914	)
Digital assets traded for cash			–				1,291
Depreciation and amortization			39,841				8,780
Gain on disposition of digital assets			–				(182	)
Loss on revaluation of digital assets			104,898				–
Gain on revaluation of warrants liability			(97,421	)			–
Share based payments			3,276				4,524
Income tax expense (recovery)			9,593				(780	)
Net finance expense (income) and other			2,835				(987	)
Foreign exchange loss			684				643
			(57,079	)			(33,531	)
Net change in working capital (Note 16)			1,315				2,212
Net cash used in operating activities			(55,764	)			(31,319	)
Investing activities
Purchase of plant and equipment			(102,390	)			(10,248	)
Deposits and prepaid expenses			46,972				(61,529	)
Business acquisition			(30,174	)			–
Net cash used in investing activities			(85,592	)			(71,777	)
Financing activities
Repayment of loan payable			–				(25,372	)
Finance draws from equipment financing			–				8,411
Repayment of equipment financing			(11,051	)			(2,746	)
Proceeds from issuance of common shares, net of issuance costs			75,931				180,033
Proceeds from exercise of warrants and options			14				31,330
Finance income received			831				1,014
Finance expense paid			(3,428	)			(370	)
Payment (recovery) of lease obligations			(919	)			9
Net cash provided by financing activities			61,378				192,309
(Decrease) increase in cash			(79,978	)			89,213
Cash, beginning of period			140,127				2,816
Effect of movement in exchange rates on cash held in foreign currencies			(17	)			651
Cash, end of period		$	60,132			$	92,680

(a)

Revenue recognition

-

Monthly recurring revenue (“MRR”) from high performance computing services are recognized as service revenue ratably over the enforceable term of individual contracts which is typically the stated term. The Company satisfies its performance obligation as these services are made available over time. The Company believes this method to be the best representation of transfer of services as it is consistent with industry practice to measure satisfaction through passage of time.

-

Transaction price is determined as the list price of services (net of discounts) that the Company delivers to its customers, taking into account the term of each individual contract, and the ability to enforce and collect the consideration.

-

Revenue from installation services, which are not treated as distinct performance obligations, are recognized over the enforceable term of individual contracts consistent with the schedule of MRR discussed above.

-

Usage revenue (overage and consumption-based services) is recorded as service revenue in the month the usage is incurred/service is consumed by the customer, based on a fixed agreed upon amount per unit consumed.

-

Payment is typically due at the beginning of each month for MRR services and at the end of each month for usage revenue

(i)

Sale of bundled services

(ii)

Service Credits

(b)

Goodwill:

(c)

Intangible assets

Net working capital		$	691
Plant and equipment			24,856
Intangible assets			11,000
Goodwill			3,150
Lease liabilities			(9,523	)
		$	30,174

As at		June 30, 2022				December 31, 2021
Current
Prepaid insurance		$	466			$	1,580
Prepaid electricity			285				1,308
Other			2,344				471
Total current deposits and prepaid expenses		$	3,095			$	3,359
Non-current
Deposits for equipment purchase		$	72,381			$	110,761
Deposits related to power purchase agreement			20,000				20,000
Deposits related to operating site development			7,834				18,609
Deposits related to electricity supply under electricity supply agreement			8,522				6,253
Other			794				881
Total non-current deposits		$	109,531			$	156,504

		Amount								Number of digital assets
As at		June 30, 2022				December 31, 2021				June 30, 2022				December 31, 2021
Digital assets held in custody		$	188,812			$	206,531				7,406				3,518
Digital assets subject to lending arrangement			–				117,415				–				2,000
Total digital assets		$	188,812			$	323,946				7,406				5,518

		Amount				Number of Bitcoin
Total digital assets, January 1, 2021		$	101,962				2,762
Bitcoin mined			165,398				2,786
Bitcoin traded for cash			(1,291	)			(30	)
Gain on disposition of digital assets			182				–
Revaluation of digital assets			57,695				–
Total digital assets, December 31, 2021		$	323,946				5,518
Bitcoin mined			88,426				1,888
Revaluation of digital assets			(223,560	)			–
Total digital assets, June 30, 2022		$	188,812				7,406

		Mining infrastructure				Mining servers				Data centre infrastructure				Computer and network equipment				Leasehold improvements				Right-of-use assets				Total
Cost
Balance, January 1, 2021		$	45,287			$	88,215			$	–			$	–			$	–			$	504			$	134,006
Additions			1,420				85,012				–				–				–				460				86,892
Balance, December 31, 2021			46,707				173,227				–				–				–				964				220,898
Additions			23,558				78,456				135				209				32				10,690				113,080
Acquired through business acquisition			–				–				10,432				4,531				287				9,606				24,856
Balance, June 30, 2022		$	70,265			$	251,683			$	10,567			$	4,740			$	319			$	21,260			$	358,834
Accumulated Depreciation
Balance, January 1, 2021		$	21,860			$	79,522			$	–			$	–			$	–			$	101			$	101,483
Depreciation			6,027				17,073				–				–				–				189				23,289
Balance, December 31, 2021			27,887				96,595				–				–				–				290				124,772
Depreciation			1,705				35,119				545				682				40				1,178				39,269
Balance, June 30, 2022		$	29,592			$	131,714			$	545			$	682			$	40			$	1,468			$	164,041
Net book value as of
December 31, 2021		$	18,820			$	76,632			$	–			$	–			$	–			$	674			$	96,126
June 30, 2022		$	40,673			$	119,969			$	10,022			$	4,058			$	279			$	19,792			$	194,793

		Customer Relationships				Goodwill				Total
Cost
Balance, January 1, 2021		$	–			$	–			$	–
Additions			–				–				–
Balance, December 31, 2021			-				-				-
Acquired through business acquisitions			11,000				3,150				14,150
Balance, June 30, 2022		$	11,000			$	3,150			$	14,150
Accumulated Amortization
Balance, January 1, 2021		$	–			$	–			$	–
Amortization			–				–				–
Balance, December 31, 2021			-				–				–
Amortization			572				–				572
Balance, June 30, 2022		$	572			$	–			$	572
Net book value as of
December 31, 2021		$	–			$	–			$	–
June 30, 2022		$	10,428			$	3,150			$	13,578

(i)

Shares issued as payment of invoices to key service providers.

(ii)

Shares issued upon vesting of restricted share units (“RSU”) and deferred share units (“DSU”), net of employment withholdings.

Level 1:

Unadjusted quoted prices in active markets for identical assets and liabilities;

Level 2:

Inputs other than quoted prices that are observable for the asset or liability either directly or indirectly from observable market data; and

Level 3:

Inputs that are not based on observable market data.

June 30, 2022		Level 1				Level 2				Level 3				Total
Fair value carried through profit and loss
Warrants Liability		$	-			$	1,600			$	-			$	1,600
Deposits			108,737				-				-			$	108,737
December 31, 2021		Level 1				Level 2				Level 3				Total
Fair value carried through profit and loss
Warrants Liability			-				99,021				-			$	99,021
Deposits			156,093				-				-			$	156,093

(a)	Digital assets

		Three months ended								Six months ended
For the six months ended June 30		2022				2021				2022				2021
Digital assets mined		$	39,134			$	31,357			$	88,426			$	61,914
High performance computing			4,711				-				8,001				-
Hosting fees			-				2,192				751				3,618
Total revenue		$	43,845			$	33,549			$	97,178			$	65,532

		Three months ended								Six months ended
For the six months ended June 30		2022				2021				2022				2021
Site operating costs		$	(26,782	)		$	(13,655	)		$	(45,295	)		$	(27,628	)
Depreciation			(20,904	)			(2,977	)			(39,269	)			(8,780	)
Total cost of revenue		$	(47,686	)		$	(16,632	)		$	(84,564	)		$	(36,408	)

		Three months ended								Six months ended
For the six months ended June 30		2022				2021				2022				2021
Professional fees		$	(2,312	)		$	(2,738	)		$	(4,620	)		$	(3,218	)
General, office and other			(2,036	)			(158	)			(3,281	)			(440	)
Sales tax expense			(2,024	)			(1,018	)			(5,187	)			(1,800	)
Share based payments			(1,977	)			(1,768	)			(3,276	)			(4,524	)
Salary and benefits			(1,869	)			(680	)			(3,786	)			(2,538	)
Insurance expense			(1,344	)			(628	)			(2,425	)			(828	)
Investor relations and regulatory			(716	)			(1,804	)			(1,237	)			(1,988	)
Total general and administrative expense		$	(12,278	)		$	(8,794	)		$	(23,812	)		$	(15,336	)

For the six months ended June 30		2022				2021
Accounts receivable and other		$	(1,110	)		$	(487	)
Prepaid expense			1,039				(5,636	)
Accounts payable and accrued liabilities			1,386				8,335
		$	1,315			$	2,212