Is Hut 8 Mining Corp Stock Halal?
Table of Contents
How much of Hut 8 Mining’s revenue comes from haram?
Hut 8 earns its revenue from the following revenue sources:
- Digital Assets Mined:
Includes revenue earned from mining Bitcoin.
- Hosting fees:
Hut 8 provides server hosting services for independent cryptocurrency miners to use in exchange for a fee.
Practical Islamic Finance concludes:
None of Hut 8’s revenue comes from anything inherently haram.
Does Hut 8 Mining rely on interest to operate?
| Year-to-Date for period ended 3/31/2021 | Fiscal year ended 12/31/2020 | Fiscal year ended 12/31/2019 | |
|---|---|---|---|
| Interest Income | $532 | – | – |
| Total Revenue | $32,515 | $40,711 | $81,990 |
| Interest Expense | $173 | $56 | $78 |
| Total Expenses | $20,515 | $43,682 | $43,682 |
| Interest Income / Revenue | 1.64% | – | – |
| Interest Expense / Total Expense | 0.84% | 0.13% | 0.18% |
Practical Islamic Finance concludes:
Riba is used but not relied upon in Hut 8 Mining’s operations.
What is Hut 8’s Environmental, Social, and Governance (ESG) impact?
Environment
According to Hut 8, in 2019 the company sourced 77 percent of its energy use from renewable sources.
Since then, the company has appointed Ronnie Yu as its Head of Sustainability in order to expand its ESG initiatives and sustainable mining practices.
Social
No notable social highlights.
Governance
No notable governance highlights.
Practical Islamic Finance concludes:
Hut 8 has a net positive ESG impact.
Comfort Rating
From Hut 8’s business, financial, and ESG reviews, Practical Islamic Finance rates Hut 8 stock as:
Comfortable to invest in from a Halal perspective.
Sources
HUT 8 MINING CORP. 2021 Q1 Report
HUT 8 MINING CORP. 2020 Financial Statement
Hut 8 Mining on Sustainability, Expansion and Surviving Crypto Winter