The
number of Bitcoins publicly traded miner Hut 8 Mining Corp. produced increased
to 111 BTC in September. Although this result is significantly lower than last
year’s, it reflects a general trend observed in the industry. Additionally, Hut
8 is progressing with its business combination with U.S. Data Mining Group,
marking a significant milestone in its growth strategy.
In
September, Hut 8 generated 111 Bitcoins, averaging a production rate of about
3.7 Bitcoins per day. Compared to the last month, it is a modest increase of 8
BTC compared to 103 tokens mined in August 2023. However, compared to the same
period a year earlier, the crypto production fell visibly, by 166 BTC, from 277
mined in September 2022.
Interestingly,
the company chose not to sell any of its mined Bitcoins during the latest
reported period. As of 30 September, Hut 8’s total Bitcoin reserve stood at
9,366, with 7,269 of these being unencumbered. In comparison, a year earlier,
the total BTC reserve came in at 8,388. The installed ASIC hash rate capacity
at the company’s Alberta facilities was reported to be 2.6 EH/s at the end of
the month, and the company produced 42.7 BTC per EH.
The
issue of a significant decline in mining compared to the previous year is not
unique to Hut 8 but also affects other publicly traded companies. Similar data
comes from the Argo Blockchain report published last week and a separate mining
report by Bitfarms. This has led analysts to increasingly question whether
Bitcoin mining is still profitable.
Business Combination and
Future Prospects
Another
significant development for Hut 8 was the approval of its proposed business combination
with US Data Mining Group, also known as USBTC. This approval came during a
special meeting held on 12 September and is considered a crucial step toward
completing the transaction. Following this, the Canadian Supreme Court of
British Columbia issued a final order approving the arrangement on 15 September.
“The
vote, along with the Supreme Court of British Columbia’s approval of our plan
of arrangement, continue to advance us toward a new Hut 8,” Jaime
Leverton, the CEO of Hut 8, expressed gratitude towards shareholders for their
support. “It will have highly diversified fiat revenue streams in high-performance
computing, hosting, and managed infrastructure operations, all of which are
intended to capture upside and solve for the challenges that single-threaded
miners will face going into the next halving .”
As Finance
Magnates reported in August, Hut 8 found itself among five publicly traded
companies that felt the adverse effects of a sudden drop in BTC price. Their
total market cap fell 30% within a month, from $9.5 billion to $6.7 billion.
The
number of Bitcoins publicly traded miner Hut 8 Mining Corp. produced increased
to 111 BTC in September. Although this result is significantly lower than last
year’s, it reflects a general trend observed in the industry. Additionally, Hut
8 is progressing with its business combination with U.S. Data Mining Group,
marking a significant milestone in its growth strategy.
In
September, Hut 8 generated 111 Bitcoins, averaging a production rate of about
3.7 Bitcoins per day. Compared to the last month, it is a modest increase of 8
BTC compared to 103 tokens mined in August 2023. However, compared to the same
period a year earlier, the crypto production fell visibly, by 166 BTC, from 277
mined in September 2022.
Interestingly,
the company chose not to sell any of its mined Bitcoins during the latest
reported period. As of 30 September, Hut 8’s total Bitcoin reserve stood at
9,366, with 7,269 of these being unencumbered. In comparison, a year earlier,
the total BTC reserve came in at 8,388. The installed ASIC hash rate capacity
at the company’s Alberta facilities was reported to be 2.6 EH/s at the end of
the month, and the company produced 42.7 BTC per EH.
The
issue of a significant decline in mining compared to the previous year is not
unique to Hut 8 but also affects other publicly traded companies. Similar data
comes from the Argo Blockchain report published last week and a separate mining
report by Bitfarms. This has led analysts to increasingly question whether
Bitcoin mining is still profitable.
Business Combination and
Future Prospects
Another
significant development for Hut 8 was the approval of its proposed business combination
with US Data Mining Group, also known as USBTC. This approval came during a
special meeting held on 12 September and is considered a crucial step toward
completing the transaction. Following this, the Canadian Supreme Court of
British Columbia issued a final order approving the arrangement on 15 September.
“The
vote, along with the Supreme Court of British Columbia’s approval of our plan
of arrangement, continue to advance us toward a new Hut 8,” Jaime
Leverton, the CEO of Hut 8, expressed gratitude towards shareholders for their
support. “It will have highly diversified fiat revenue streams in high-performance
computing, hosting, and managed infrastructure operations, all of which are
intended to capture upside and solve for the challenges that single-threaded
miners will face going into the next halving .”
As Finance
Magnates reported in August, Hut 8 found itself among five publicly traded
companies that felt the adverse effects of a sudden drop in BTC price. Their
total market cap fell 30% within a month, from $9.5 billion to $6.7 billion.