Tag: Hut 8

Hut 8 Mining Corp Generated 330 BTC in July, Becoming one of the Largest BTC Holders

by Blockchain News

North American publicly traded cryptocurrency mining company Hut 8 Mining Corp has announced its operational update of July.

Last month, Hut 8 revealed that it mined 330 Bitcoins at an average rate of 10.61 Bitcoins per day.

As of July 31, 2022, Argo said it held 7,736 bitcoins, making it one of the largest public holders of Bitcoins traded on Nasdaq and the Toronto Stock Exchange.

Hut 8 revealed that Hut 8 holds 100% of all its self-mined Bitcoin in escrow as part of its ongoing HODL strategy,

The company revealed that it will continue to hold the mined bitcoins. This starkly contrasts with other miners selling bitcoin to pay for operating expenses and loan debt.

Mining company Argo said it sold 887 bitcoins in July at an average price of around $22,670. The company said it used the funds to reduce debt under a BTC-backed loan agreement with Galaxy Digital and to cover operating expenses and growth capital.

Argo said it recently signed Foundry as a cloud services customer to enhance its high-performance computing business. The company now expects its mining machines to produce better performance and have greater control over operations, including operating expenses.

CEO Jaime Leverton said of the development: “At the same time, we continue to focus on growing the uncorrelated recurring revenue within our high-performance computing business and are thrilled to welcome Foundry aboard as a cloud services customer in our Mississauga data center.”

Hut 8, a Bitcoin mining company based in Canada, announced on July that it has bought 5,800 mining machines for its Ontario facility.

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Hut 8 Purchases 5,800 Mining Rigs to Improve Productivity in Ontario

by Blockchain News

Hut 8, a Bitcoin mining company based in Canada, announced on Wednesday that it has bought 5,800 mining machines for its Ontario facility.

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With the latest purchase, these mining rigs to its fleet at its mining facility at the North Bay site in Ontario. Hut 8 mentioned that new machines will add greater petahashes per second (PH/s) of hashrate to its Bitcoin mining capacity, once fully deployed.

The firm expects the addition of the new miners to help increase its mining production capacity, especially during this bear market that has seen a significant drop in mining output alongside a plunge in crypto prices.

Hut 8 disclosed that its machines at its North Bay site in Ontario were operating on 20 megawatts (MW) of power, as of June 30.

Currently, the Bitcoin mining firm said its total operating capacity in computing power stood at 2.78 exahash/second (EH/s).

Hut 8 revealed that it mined 328 Bitcoins during June and increased its holdings to 7,406 BTC ($148 million).

The company disclosed that it would continue to hold its mined Bitcoins. This is in contrast to other miners are selling their Bitcoins to pay operating expenses and loan obligations. On Tuesday, Core Scientific, a major mining firm in the industry, sold 7,202 Bitcoins in June to raise $167 million.

With the ongoing crypto winter, all miners are witnessing declining profits as Bitcoin prices dropped last month. Some mining firms are facing margin calls on debt issued during bull periods as the value of their collateral, normally mining machines or Bitcoin, has also dropped.

Hut 8 is one of the least leveraged publicly-traded Bitcoin mining companies relative to its equity. The firm had CAD$140 million ($107 million) in cash as of the end of last year, according to its annual earnings report.

Hut 8 has diversified its revenue streams away from cryptocurrency. Its high-performance computing business is on track to see a growth of up to 18% by the end of 2022. 

Hut 8 is not the only Bitcoin mining firm to have added its mining rigs during this market crash. Mid-last month, CleanSpark, a Bitcoin mining based in California, purchased an addition of 1,800 Antminer S19 XP computers to take advantage of the bear market and the fallen prices for Bitcoin mining rigs.

CleanSpark capitalized on the current difficult market conditions, where the plunge in Bitcoin prices led to a drop in the prices of ASICs, computerized devices specifically used for mining Bitcoin or another cryptocurrency.

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Crypto Miner Hut 8 Launches New Facility in Ontario, Bitcoin Mining Production Remains Robust

by Blockchain News

On Monday, Hut 8 Mining Corp, a Bitcoin mining company, published its Bitcoin (“BTC”) production and miner installation updates for May 2022.

Based on the latest report by Hut 8 Mining Corp, the cryptocurrency mining business is a good investment. It is evident that most miners look solidly profitable. 

Hut 8 improved its Bitcoin holdings in the period that ended May 31. Last week on Thursday, the mining firm announced that it started operations in its third mining facility at its North Bay site in Ontario, Canada. In late May, the company began testing its North Bay facility and started operating on 15 MW of power on June 2, adding approximately 400 PH/s to its operating capacity.

According to the report, Hut 8 mined 309 Bitcoins in May, hitting an average production rate of 10 Bitcoin per day. The firm decided to hold on to all of its self-mined Bitcoins in line with its long-standing HODL strategy.

As of May 31, Hut 8 said that it has a total of 7,078 BTC held on its balance sheet and installed an operating capacity of 2.64 exahash per second. Its Ethereum mining constituted about 14% of its total production, the company mentioned.

According to the company’s statement, since power costs continued to fluctuate throughout the month, the firm had to limit consumption at its facility at Drumheller (a town in Canada) as the spot price for power spiked.

Hut 8 said it is continuing to add miners and increase its power supply throughout June and expects that the North Bay mine will have a significant impact on its production results going forward.

Jaime Leverton, CEO of Hut 8, talked about the development and said: “We are thrilled that our most powerful and efficient machines are now mining Bitcoin at our North Bay site. Over the next several weeks, our team will continue installing and bringing miners online in real-time, complementing production at our facilities in Medicine Hat and Drumheller.”

Investors Seeing Compelling Opportunities in Miners

The latest development by Hut 8 is a testimony that crypto mining companies are providing a compelling investment alternative compared with other forms of direct and indirect exposure to cryptocurrencies.

Mining is still highly profitable and gross margins remain super healthy despite the sharp decline in crypto prices and an increasing network hashrate.

Major Bitcoin mining firms such as Marathon Digital, Hut 8, Bitfarms, Hut 8, Argo Blockchain, and Bit Digital have continued to build cost leadership and production scale, which provide better investment opportunities than volatile cryptocurrencies.

They have become a popular way in which many investors seek to invest indirectly in the underlying asset.

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Hut 8 Achieves Record High Annual Revenue of $173.8m

by Blockchain News

A prominent Canadian cryptocurrency mining company, Hut 8 achieves a record high annual revenue of $173.8 million. Bitcoin holdings will increase by 100% to 5,518 by the end of 2021, with a market cap of $323.9 million.

Hut 8’s fourth-quarter 2021 financial results, released Thursday, showed overall revenue soaring to $45.69 million (C$57.901 million), nearly quadrupling the $10.25 million (C$12.986 million) in the previous year’s fourth quarter.

Revenue for the year ended December 31, 2021, was $173.8 million, a 327% increase from the previous year’s annual revenue of just $40.7 million.

Jaime Leverton, CEO of Hut 8, said that:

“2021 was truly a transformational year at Hut 8, complemented by considerable growth. In pursuing a diversified strategy, we have differentiated ourselves from our peer group and in doing so, have become the only company in North America to both mine digital assets while building on our traditional infrastructure business to support companies in Web 3.0 and the Metaverse.”

Despite making huge profits from mining activities, the company said it posted a net loss of $72.7 million for the year ended December 31, 2021, compared with a net income of $19 million for the same period in 2020.

It posted an overall loss of $0.53 (C$0.67) per share in the fourth quarter. Loss per share for the full year 2021 was $0.43 (C$0.54).

Hut 8 is a digital asset mining company with industrial-scale operations in Alberta, Canada. On December 3 last year, Hut 8 was the first company in the industry to be included in the S&P TSX index.

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Crypto miner Hut 8 surpassed 5K Bitcoin held in reserves

by Cointelegraph

In its third-quarter earnings release, Canadian cryptocurrency miner Hut8 announced that it surpassed its goal set earlier this year of holding 5,000 Bitcoins (BTC) in reserves through mining. Its Bitcoin balance now amounts to 5,053, for a total market value of $430 million.

During the quarter, Hut 8 generated 50.34 million Canadian dollars (CA$) in revenue and CA$23.37 million in net income, up from CA$5.75 million in revenue and a loss of CA$0.90 million in the prior year’s quarter. The company hosts a sizable fleet of Application-Specific Integrated Circuit, or ASIC, machines used for Bitcoin mining. In addition, it deploys NVIDIA GPUs to mine Ethereum (ETH).

The company’s total hash rate (Bitcoin and Ethereum mining combined), or the number of guesses per second needed to obtain a mathematical solution to mine a new block on a proof-of-work blockchain, amounts to 1.7 exahashes per second (1.7*10^18 hashes/s, EH/s). In context, the total hash rate of the entire Bitcoin network is 162 EH/s, according to data provided by Blockchain.com. As for Ethereum, that number stands at 817.06 terhashes per second (817.06*10^12 hashes/s, TH/s), according to data provided by 2Miners.com. The firm’s contracted mining capacity for Ethereum stands at 1.6 TH/s.

Hut 8 adopts a hold-on-for-dear-life, or HODL, strategy when it comes to mining Bitcoin; that is, it does not seek to sell them under most circumstances. The firm also lends out its BTC to farm yields, and claims to mine close to 20 BTC per day.

Location of Hut 8’s crypto mining operations. | Source: Hut 8 Q3 2021 Earnings Call Presentation 

The company operates in the Canadian province of Alberta with plans to expand to Ontario. It uses a mixture of natural gas, wind, and green energy for its mining operations.