Hut 8's Bitcoin Output Holds Steady in October

Hut 8’s Bitcoin Output Holds Steady in October

Time Stamp: November 7, 2023 10:37 AM
Source Node: 2370948

Hut 8 Mining Corp. mined 112 Bitcoins in October
amid recent developments, including the merger with US Bitcoin Corp. The mining firm’s output in the period was equal to a
daily production rate of around 3.6 Bitcoins.

During October, Hut 8 sold 365 Bitcoins for CAD$14.6 million. This translates to an average selling price of
approximately CAD$39,980 per Bitcoin. As a result, Hut 8 maintains a
significant Bitcoin reserve of 9,113,
according to the statement released by the company today (Tuesday).

Hut 8 installed an ASIC hash rate capacity of 2.6
EH/s in its Alberta facilities by the end of October. According to the company,
this resulted in a production rate of 43.1 BTC/EH.

Besides that, during the period, Hut 8 secured
approval from the Ontario Superior Court of Justice for a bid to acquire four
natural gas power plants in Ontario, totaling approximately 310 MW. This
acquisition includes a Bitcoin mine in North Bay. Hut 8 anticipates that this
move, coupled with its proposed business combination with US Bitcoin Corp., will strengthen its operations.

Jaime Leverton, the CEO of Hut 8, mentioned: “While
our mining results remained steady month over month, we made meaningful
progress toward building an infrastructure-first, diversified operation that we
believe will be the first in our industry. Between being granted approval to
submit a stalking horse bid for approximately 310 MW of natural gas power plant
assets in Ontario, including our former North Bay site, and our work to close
our proposed business combination with US Bitcoin Corp., we are making headway
toward creating a new Hut 8.”

In September, Hut 8 mined 111 Bitcoins, a reduction
from the previous year but in line with the broader industry trend. Hut 8’s
Bitcoin production for the period equated to an average daily production rate of
approximately 3.7 BTC. This figure marked a modest increase from the 103
Bitcoins mined in August. However, when compared to the same period a year ago,
production declined by 166 BTC from 277 Bitcoins in September 2022.

As of September 30, the company’s Bitcoin reserve
stood at 9,366. This is a substantial increase compared to the previous year,
when the total Bitcoin reserve was at 8,388. The company’s installed ASIC hash
rate capacity at its Alberta facilities stood at 2.6 EH/s at the end of the
month, resulting in a production rate of 42.7 BTC per EH.

Hut 8 Defies Challenges Facing Crypto Mining Firms

It’s worth noting that the decline in mining
production is not unique to Hut 8; it’s a trend seen across publicly traded
companies in the crypto-mining sector, Finance Magnates reported. This decline
has led analysts to question the profitability of Bitcoin mining, especially in
the face of challenges like increasing competition and regulatory changes.

Hut 8’s Q2 revenue plummeted from USD $44 million in
the same period last year to USD $19 million, marking a decline of 56%
year-over-year. This is a reflection of the company’s struggles during
the quarter. In addition, the company’s Bitcoin mining output saw a reduction of 58%, with only 399 Bitcoins mined in the quarter.

Hut 8 faced various operational challenges during
the quarter that contributed to its revenue and mining output decline. The
company reported a drop in profit from mining operations, which fell from USD
$14.9 million in the second quarter of 2022 to USD $3.2 million.

Hut 8 Mining Corp. mined 112 Bitcoins in October
amid recent developments, including the merger with US Bitcoin Corp. The mining firm’s output in the period was equal to a
daily production rate of around 3.6 Bitcoins.

During October, Hut 8 sold 365 Bitcoins for CAD$14.6 million. This translates to an average selling price of
approximately CAD$39,980 per Bitcoin. As a result, Hut 8 maintains a
significant Bitcoin reserve of 9,113,
according to the statement released by the company today (Tuesday).

Hut 8 installed an ASIC hash rate capacity of 2.6
EH/s in its Alberta facilities by the end of October. According to the company,
this resulted in a production rate of 43.1 BTC/EH.

Besides that, during the period, Hut 8 secured
approval from the Ontario Superior Court of Justice for a bid to acquire four
natural gas power plants in Ontario, totaling approximately 310 MW. This
acquisition includes a Bitcoin mine in North Bay. Hut 8 anticipates that this
move, coupled with its proposed business combination with US Bitcoin Corp., will strengthen its operations.

Jaime Leverton, the CEO of Hut 8, mentioned: “While
our mining results remained steady month over month, we made meaningful
progress toward building an infrastructure-first, diversified operation that we
believe will be the first in our industry. Between being granted approval to
submit a stalking horse bid for approximately 310 MW of natural gas power plant
assets in Ontario, including our former North Bay site, and our work to close
our proposed business combination with US Bitcoin Corp., we are making headway
toward creating a new Hut 8.”

In September, Hut 8 mined 111 Bitcoins, a reduction
from the previous year but in line with the broader industry trend. Hut 8’s
Bitcoin production for the period equated to an average daily production rate of
approximately 3.7 BTC. This figure marked a modest increase from the 103
Bitcoins mined in August. However, when compared to the same period a year ago,
production declined by 166 BTC from 277 Bitcoins in September 2022.

As of September 30, the company’s Bitcoin reserve
stood at 9,366. This is a substantial increase compared to the previous year,
when the total Bitcoin reserve was at 8,388. The company’s installed ASIC hash
rate capacity at its Alberta facilities stood at 2.6 EH/s at the end of the
month, resulting in a production rate of 42.7 BTC per EH.

Hut 8 Defies Challenges Facing Crypto Mining Firms

It’s worth noting that the decline in mining
production is not unique to Hut 8; it’s a trend seen across publicly traded
companies in the crypto-mining sector, Finance Magnates reported. This decline
has led analysts to question the profitability of Bitcoin mining, especially in
the face of challenges like increasing competition and regulatory changes.

Hut 8’s Q2 revenue plummeted from USD $44 million in
the same period last year to USD $19 million, marking a decline of 56%
year-over-year. This is a reflection of the company’s struggles during
the quarter. In addition, the company’s Bitcoin mining output saw a reduction of 58%, with only 399 Bitcoins mined in the quarter.

Hut 8 faced various operational challenges during
the quarter that contributed to its revenue and mining output decline. The
company reported a drop in profit from mining operations, which fell from USD
$14.9 million in the second quarter of 2022 to USD $3.2 million.

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