Hut 8 Mining Opens Third Facility, Hits 7,000 Bitcoins in Reserves

Company seeks to increase production in coming weeks and ultimately double power at new Ontario site

article-image

Bitcoin mining farm | Source: Shutterstock

share

key takeaways

  • Hut 8 produced 309 bitcoins in May, bringing its total bitcoins in reserve to 7,078
  • CEO expects monthly recurring revenue from data center acquisitions will grow by up to 18% this year

Hut 8 Mining opened its third site after the number of bitcoins in its reserves hit 7,000 as the company continues to amp up capacity despite a broad-based crypto turndown.

The Canadian company’s mine in North Bay, Ontario began operating on 15 megawatts (MW) on June 2, adding roughly 400 petahashes per second (PH/s) to Hut 8’s operating capacity. 

“We are adding both miners and capacity on site and are working to significantly increase production in the coming weeks and months,” Hut 8 CEO Jaime Leverton told Blockworks in an email, noting its goal is to ultimately reach 30 MW of power at the North Bay operation.

The executive declined to comment on whether the company plans to open additional facilities.

Hut 8 Mining, which also has two sites in southern Alberta, mined 309 bitcoins in May, bringing its total bitcoins in reserve to 7,078. Its current operating capacity is 2.64 exahashes per second (EH/s).

The latest monthly total was the same as its output in April but below its production of 345 bitcoins in March.

Hut 8 limited its consumption at its Drumheller facility when the price of power spiked, the company said Monday.

“Everything we mine, we keep, and 100% of our stack is unencumbered, meaning that in addition to operating efficiently and taking a very strategic approach to equipment purchases and consistently driving efficiencies in our mines, we have a level of flexibility that sets us apart from our peers,” Leverton said. 

The company’s third facility follows its acquisition of wireless connectivity company TerraGo at the end of January for $30 million (CAD), which brought five data centers to Hut 8. 

Sue Ennis, the firm’s vice president of investor and corporate development, told Blockworks in March that Hut 8 is looking to set up scalable cloud services that provide an alternative to cloud computing giants such as Amazon Web Services, Google Cloud and Switch.

Leverton said the data centers purchase has given Hut 8 Mining a monthly recurring revenue stream from 400 enterprise-grade customers, which she expects will grow by up to 18% this year. The company’s certified repair shop provides further revenue and supply chain advantages, she added.

Hut 8’s stock price was $2.23 Monday afternoon, down roughly 70% year to date and down nearly 20% in the last five days.


Start your day with top crypto insights from David Canellis and Katherine Ross. Subscribe to the Empire newsletter.

Tags

Upcoming Events

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Avail.jpg

Research

Data publishing costs have historically been a bottleneck for rollups, and as more rollups launch, interoperability will continue to be a major challenge. Avail presents a potential solution to rollup fragmentation through its three products: Avail DA, Nexus, and Fusion, which together aim to unify the web3 experience.

article-image

Bitcoin miners need to explore unconventional energy avenues or be buried by the financial realities created by this halving

article-image

BlackRock’s iShares Bitcoin Trust continues to see daily positive net flows, though its inflow total for a single day hit a new low Wednesday

article-image

Binance is making moves, from receiving a new license in Dubai to switching its SAFU fund to USDC

article-image

Miner stocks have historically underperformed bitcoin before the halving and outperformed the asset after the event, analysts note

article-image

After a one-week trial, a jury convicted crypto trader Avraham Eisenberg

article-image

A verdict in Avraham Eisenberg’s criminal fraud trial is expected this afternoon