Bitcoin Miner Hut 8 Uses “HODL” Strategy to Increases BTC Balance by 6.8% in Just Over A Month

The latest fleet of NVIDIA chips helped the company mine Bitcoin at a total cost of under $3,000 per BTC, “delivering margins of approximately 95%.”

Hut 8 Mining Corp. reported holding a total of 5,053 Bitcoin as of November 10, up from 4,729 BTC at the end of the third quarter.

This BTC balance includes the 2,000 Bitcoin loaned part of the company's fiat yield strategy.

The company said it is using the “HODL” strategy to fund its operating expenses to avoid selling Bitcoin and, during Q3, deposited 100% of its self-mined Bitcoin into custody. Hut 8 minted 905 Bitcoin in Q3.

In the third quarter ended Sept. 30, Hut 8 posted revenue of $50.3 million with self-mining operations generating $47.9 million of revenue with $2.4 million coming from its expanded hosting service.

The company currently has 1.7 EH/s of hash rate installed, including the converted hash rate from the fleet of NVIDIA GPUs, while total current and contracted capacity stands at approximately 4.5 EH/s.

“We have achieved an important milestone with final delivery of all 10,000 NVIDIA chips. Throughout early weeks of operation, these cutting-edge GPUs have proven to be highly efficient, mining at a total cost of under $3,000 per Bitcoin, delivering margins of approximately 95%,” said Shane Downey, Chief Financial Officer of Hut 8.

Hut 9 deployed the NVIDIA GPUs to mine the Ethereum network via the Luxor pool. ETH -10.03% Ethereum / USD ETHUSD $ 1,761.23
Volume 18.7 b Change -$176.65 Open $1,761.23 Circulating 120.93 m Market Cap 212.99 b
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During this period, the company purchased 12,000 new MicroBT M30S, M30S+, and M30S++ miners for $58.7 million, costing about $50/Terahash while providing incremental production of 1.17 EH/s. The miners are expected to be delivered starting in January 2022, with full deployment is anticipated by December 2022.

Prices for bitcoin mining hardware in the market are currently lagging behind the BTC, which has rallied to its new all-time highs while typically manufacturers increase the price in proportion to crypto price increases. This has been due to the capacity crunch that followed China's crackdown on crypto mining.

At $100 per terahashes per second (TH/s), Bitmain's AntMiner S19 Pro’s cost is currently down from about $120 per TH/s in April and May.

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