Hut 8 closes Canadian Bitcoin mine to boost efficiency.

Ritu13

Hut 8, the well-known cryptocurrency mining company (Nasdaq|TSX: Hut), has shuttered its Bitcoin mining facility in the province of Alberta, Canada. This decision, announced on 3/6, aligns with the company's ongoing restructuring and optimization efforts aimed at enhancing financial performance.

Asher Genoot, CEO of Hut 8, stated, "After a comprehensive analysis, we have determined that the profitability of Drumheller has been significantly impacted by various factors, including rising energy costs and potential voltage issues."

Efficient miners to be relocated
The company further elaborated that it will relocate efficient cryptocurrency miners to the Medicine Hat mining facility in Alberta, Canada, while retiring older, less efficient miners. According to Hut 8's data, the hash rate capacity of the efficient miners at the closed site is approximately 130 PH/s, while the capacity of the less efficient miners is 38 J/TH. With this relocation, the company anticipates improving its cash flow and reducing the cost of Bitcoin mining. Hut 8 estimates that the relocation will increase the Bitcoin mined per EH by about 11%.

Despite the historical high of Bitcoin prices, both Bitcoin production and HIVE stock prices are declining, prompting the company to strengthen its financial position. In the midst of financial challenges, Hut 8 has undertaken operational restructuring. In the third quarter of 2023, the company's revenue decreased by 46% to 17 million Canadian dollars, including 4.5 million Canadian dollars from the high-performance computing business. After falling to 9.9 million USD, its net loss doubled.

"Our restructuring plan is aimed at unlocking the maximum value of our assets and achieving profit growth for the company. With nominal leasing costs, if energy prices from the AESO grid decrease or hash prices rise, we can also choose a cost-effective way to reconnect the site."

Despite the immediate closure of the facility, Hut 8 will continue to lease the site, retaining the option to restart it if market conditions improve. Meanwhile, Hut 8 has recently undergone a leadership change, appointing Asher Genoot to succeed Jaime Leverton as CEO.

Yamini003

Improving efficiency is indeed very necessary.

Nimmi373

It all makes me quite envious.