Bitcoin Miner, Hut 8, Projects Crypto Holdings to Eclipse 5,000 BTC by EoY
In a newly released corporate update, Canadian crypto mining firm Hut 8 said it plans to increase its self-mined Bitcoin holdings to 5,000 by the end of 2021.
The firm currently has about 3,806 Bitcoin, roughly $134 million, on its balance sheet. This is an increase from the 3,271 it had at the end of March.
Hut 8 To Expand Hashrate
Hut 8 said the expected crypto holdings would be possible when it increases its hashrate to “2.5 – 3.0 Exahash (“EH”) by the end of 2021 and to approximately 6 EH by mid-2022. This signals a 400% increase over its current levels.
The Toronto-based firm had previously said it was working on installing 5400 Whatsminer M30S machines from Chinese supplier MicroBT. The machines would be fully deployed by August and would help cut down the firm's total Bitcoin network hash rate.
Jaime Leverton, Chief Executive Officer of Hut 8, expanded on the new equipment. He said;
“We now have 1.2 Exahash in production and ongoing installation of new equipment puts us on a near-term trajectory to produce an additional [two to three] bitcoin per day by the end of August, on top of our current production rate of 6.2-7.3 bitcoin per day,”
Hut 8’s projected Bitcoin holdings come after the company completed a June 15 public offering, where it raised more than $93 million in gross proceeds.
Hut 8 now trades on the Nasdaq Global Select Market under the “HUT” ticker. The firm is also listed on the Toronto Stock Exchange (TSX).
Leverton described the capital raise and concurrent listing on Nasdaq as transformative milestones for Hut 8.
The crypto firm plans to use the raised funds to bankroll its partnership with crypto mining processor producer Nvidia, MicroBT, and Validus Power for its energy requirements from mining.
Earlier this year, Hut 8 disclosed plans to diversify its mining operations. Although primarily focused on Bitcoin, the firm obtained $30 million worth of Nvidia's crypto-focused graphics card to mine ETH along with other cryptocurrencies.
Hut 8’s Switch To Green Energy Amid Concerns On Bitcoin Mining
Since the crypto market took a sharp downturn last month, there have been concerns over Bitcoin mining. This started when Tesla’s CEO Elon Musk criticized Bitcoin’s high energy consumption alongside the Chinese government crack-down on miners.
Like some other companies, Hut 8 has been working on advancing its ESG initiatives as it focuses on sustainable mining practices.
Hut 8 is one of the miners part of the Bitcoin Mining Council, a new group of energy-conscious North American mining companies, convened by Michael Saylor.
Hut 8 has also hired Ronnie Yu as the head of power and sustainability with the sole goal of making the company carbon-neutral within a year.