The Canada-based crypto-mining firm, Bitcoin Miner Hut 8, has raised $8.3 million from the sale of 6% of its equity stake. The Canadian based company, which also trades on the Toronto Stock Exchange, had set an initial target of $7.5 million but seemed to have surpassed it by $800k.
This move will see Miner Hut 8 acquire new equipment to remain competitive in the ever-evolving crypto mining space.
The firm's interim CEO, Jimmy Vaiopoulos, has reiterated that they are proud to be pacesetters for the industry:
“We're proud to close the first prospectus offering by a cryptocurrency mining company in Canada and further improve Hut 8's lead as one of the largest public bitcoin miners.”
This milestone was characterized by the 5.7-million-unit purchase from interested investors following Miner Hut 8's market offer. Each share of the Alberta-based firm was sold at $1.45 with the option to purchase additional units in 18 months at $1.85.
Following the capital injection, Miner Hut 8 is set to buy the latest mining equipment from MicroBT with scheduled arrival dates between July and November.
According to an external spokesman of the firm, Ryleigh Ebron, the company expects to boost its mining capacity by 20% to 1,150 petahash (PH/s). Ebron went on to note that this milestone is likely to improve Miner Hut 8's financial position as well:
“This financing is expected to strengthen Hut 8's cash flows and balance sheet.”
Miner Hut 8 Financial Outlook and Strategy
The firm has been in the spotlight recently, owing to a significant downtrend since its shares listed on the Toronto stock exchange. Two years ago, the price was trading as high as $3.28 (CAD 4.50) but had since gone to a low of $0.72 (CAD 0.98) as of press time.
Could the new capital boost change this trend? Well, Ebron highlighted that they are optimistic of competing favorably especially after the May 2020 BTC halving which made the process more resource-intensive:
“The halving is arguably better for miners who can get access to the latest generation of bitcoin mining equipment as they are far more profitable and will benefit from the drop in network difficulty as older equipment continues to be turned offline.”
Also, Miner Hut 8 will change its routine supplier, which was Bitfury. The two companies had a prior standing agreement, which was hindering Miner Hut 8 from purchasing more advanced mining equipment.
However, this new position now allows much-needed changes for Miner Hut 8, and will soon purchase updated crypto mining equipment from Bitfury's competitor, MicroBT. Moving forward, the firm is also looking to capitalize on Alberta's cheap electricity rates to accommodate Bitcoin's price volatility regardless.