Hut 8 Mining Corp. (Nasdaq: HUT) (TSX: HUT) (“Hut 8” or the “Company”) one of North America’s largest, innovation-focused digital asset mining pioneers and high performance computing infrastructure provider, mined 132 Bitcoin in the period ending April 30, 2023.
Production highlights for April 2023:
- 132 Bitcoin were generated, resulting in an average production rate of approximately 4.4 Bitcoin per day.
- Total balance of unencumbered Bitcoin held in reserve as of April 30 is 9,265.
- Installed ASIC hashrate capacity at our Alberta facilities was 2.6 EH/s at the end of the month.
- Hut 8 produced 50.77 BTC/EH in April.
- No Bitcoin were sold during the month.
- Remediation at our Drumheller, Alberta site progressed throughout the month:
- High energy input levels at the site have been causing equipment failures that have materially reduced operations, which are currently at approximately 15% of our installed hashrate at the site.
- In response, we began implementing firmware across all miner models designed to lower the power supply’s maximum output voltage, ensuring our equipment operates within safe limits.
- Our team is actively engaged in repairing damaged equipment and restoring the hashrate to its optimal level.
- We are closely monitoring the situation and will continue to make the necessary adjustments as needed to restore, safeguard, and optimize our equipment.
- We are actively increasing repair staff, adding an additional repair centre shift, and have procured new hardware to expedite repairs and accelerate the speed at which we bring miners back online.
- We expect to have the site restored in 10-12 weeks.
- Spikes in energy rates have created additional headwinds at Drumheller.
- Our team is actively pursuing options to operationalize the bulk of the approximately 7,000 miners that were removed from our North Bay site.
“We are very aware of the impact that the issues at Drumheller are having on the broader business: they are complex and challenging, but we have made meaningful progress and have a roadmap to remediation,” said Jaime Leverton, CEO of Hut 8. “We are laser focused on closing the proposed transaction with US Bitcoin Corp., which will both expand our overall production to 7.02 EH/s and provide access to additional energy markets.”
Hut 8 Mining Corp. (Nasdaq: HUT) (TSX: HUT), (“Hut 8” or the “Company”) one of North America’s largest, innovation-focused digital asset mining pioneers and high performance computing infrastructure provider, continues to make progress on the proposed business combination pursuant to which Hut 8 and U.S. Data Mining Group, Inc. dba US Bitcoin Corp (“USBTC”) will combine in an all-stock merger of equals (the “Transaction”). The combined company will be named “Hut 8 Corp.” (“New Hut”) and will be a U.S.-domiciled entity. The Transaction is expected to establish New Hut as a large scale, publicly traded Bitcoin miner focused on economical mining, highly diversified revenue streams, and industry leading environmental, social, and governance (ESG) practices.
New Hut has filed an amendment to its Form S-4 Registration Statement (the “Amended Registration Statement”) with the U.S. Securities and Exchange Commission (the “SEC”). As disclosed in the Amended Registration Statement:
- New Hut’s expected installed self-mining capacity has increased from the previously disclosed 5.6 EH/s to 7.02 EH/s at mining facilities in Medicine Hat and Drumheller in Alberta; Niagara Falls, New York; Kearney, Nebraska; and Granbury and King Mountain, Texas upon the close of the Transaction. The improvement is due to the energization of additional miners at USBTC’s sites.
- The 1.7 EH/s installed self-mining capacity at the King Mountain, Texas site is owned by the King Mountain Joint Venture in which USBTC has a 50% membership interest alongside a leading energy partner.
- On April 7, 2023, USBTC entered into a settlement with the City of Niagara Falls which concluded all claims related to the ongoing litigation with the City and terminated the temporary restraining order against USBTC. USBTC was required to pay the City of Niagara Falls a $100,000 compliance fee and contribute $180,000 to the city’s attorney’s fees.
- USBTC is currently working with City officials to confirm safety procedures prior to resuming mining activity.
“Since announcing the transaction, we have made measurable progress on key files that will positively position New Hut to be very competitive in the market with 7.02 EH/s of self-mining capacity,” said Jaime Leverton, CEO of Hut 8. “In addition, we will have flexibility for growth in new fiat revenue lines of business including hosting and managed infrastructure operations, allowing us to amplify our diversification strategy, which will ultimately prove to be prescient well beyond the next halving.”
Completion of the Transaction remains subject to the remaining regulatory approvals, shareholder approval, court approval, and other customary closing conditions of the transaction.
Hut 8 Mining Corp. (Nasdaq: HUT) (TSX: HUT), (“Hut 8” or the “Company”) one of North America’s largest, innovation-focused digital asset mining pioneers and high performance computing infrastructure provider, increased our Bitcoin holdings by 299 in the period ending October 31, bringing our total self-mined holdings to 8,687 Bitcoin.
Production highlights for October 2022:
- 299 Bitcoin were generated, resulting in an average production rate of approximately 9.6 Bitcoin per day
- Keeping with our longstanding HODL strategy, 100% of the self-mined Bitcoin in October were deposited into custody
- Total Bitcoin balance held in reserve as of October 31 is 8,687
- Installed ASIC hashrate capacity was 3.07 EH/s at the end of the month, which excludes certain legacy miners that are set to be fully replaced by the end of the year
- Hut 8 produced 97.4 BTC/EH in October
“We continue to optimize our fleet to drive hashrate efficiencies at our mines,” said Jaime Leverton, CEO. “With a balance-sheet focused approach, we continue to manage well through this bear market, backed by the largest self-mined unencumbered Bitcoin stack of any publicly traded company.”
Hut 8 Mining Corp. (Nasdaq: HUT) (TSX: HUT), (“Hut 8” or the “Company”) one of North America’s largest, innovation-focused digital asset mining pioneers and high performance computing infrastructure provider, increased its Bitcoin holdings by 375 in the period ending August 31, bringing its total self-mined holdings to 8,111 Bitcoin.
Production highlights for August 2022:
- 375 Bitcoin were generated, resulting in an average production rate of approximately 12.1 Bitcoin per day.
- Keeping with our longstanding HODL strategy, 100% of the self-mined Bitcoin in August were deposited into custody.
- Total Bitcoin balance held in reserve is 8,111 as of August 31, 2022.
- Installed ASIC hash rate capacity was 2.98 EH/s at the end of the month, which excludes certain legacy miners that the Company anticipates will be fully replaced by the end of the year.
- Hut 8 produced 125.8 BTC/EH in August.
- In late August, Hut 8 installed 180 NVIDIA GPUs in its flagship data centre in Kelowna, B.C. Currently mining Ethereum, the multi-workload machines will be designed to pivot on demand to provide Artificial Intelligence, Machine Learning, or VFX rendering services to customers.
- Hut 8 is partnering with Zenlayer to bring their on-demand high-performance computing to Canadian Web 3.0 and blockchain customers for the first time.
“Our team delivered very strong results across our mining and high performance infrastructure businesses in August, positioning us well for continued success,” said Jaime Leverton, CEO. “We continue to receive and install our monthly shipments of new MicroBT miners on time, while actively adding to the suite of services we offer our data centre customers.”
Hut 8 Mining Corp. (NASDAQ: HUT) (TSX: HUT) (“Hut 8” or the “Company”), one of North America’s largest, innovation-focused digital asset mining pioneers and high performance computing infrastructure provider, has signed a partnership with Foundry Digital LLC (“Foundry”), a wholly-owned subsidiary of Digital Currency Group Inc. (“DCG”) focused on digital asset infrastructure. The deal marks the first significant Blockchain-industry win for Hut 8’s high performance computing business.
Hut 8 will support multiple lines of business for Foundry, initially at the company’s Mississauga, Ontario data centre with plans to expand into the Kelowna, British Columbia data centre for infrastructure support across Canada. Foundry works with the North American digital currency mining and staking industry bringing institutional expertise, capital and market intelligence to help build decentralized infrastructure.
“We are delighted to welcome Foundry, who we’ve long supported through their digital asset mining pool, to our high performance computing data centre in Mississauga, Ontario,” said Jaime Leverton, CEO of Hut 8. “Foundry is a leader in the digital asset industry, and we look forward to enabling their continued growth with cutting-edge infrastructure.”
“Hut 8 has been a trusted partner of Foundry’s since 2020,” said Dan Magnuszewski, CTO of Foundry. “As Bitcoin industry veterans with expertise in data centre infrastructure, Hut 8 knows our industry intimately, which is why they were a natural fit when we sought infrastructure services.”
Hut 8 Mining Corp. (Nasdaq: HUT) (TSX: HUT) (“Hut 8” or “the Company”), one of North America’s largest, innovation-focused digital asset mining pioneers, supporting open and decentralized systems since 2018, today announced that it has entered into an agreement with TAAL to conclude its hosting relationship and purchase 960 MicroBT Whatsminer M31S+ effective May 1, 2022. The ASIC miners are currently installed and running at the company’s mining facility in Medicine Hat on behalf of TAAL.
The machines are expected to provide an immediate incremental hashrate of 81 PH/s, bringing Hut 8’s total hashrate to 2.62 EH/s.
“The incremental capacity will deliver an immediate hashrate benefit as ASIC miners are already on-site, installed and hashing,” said Jaime Leverton, Chief Executive Officer of Hut 8. “Over the past 18 months, we have pursued a strategy that is unique among our peer group: in addition to digital asset mining, we support clients with high performance computing, cloud hosting, and collocation services at our five Canadian data centres so they can succeed in the burgeoning Blockchain and Web 3.0 industries.”
Once the acquisition is complete, Hut 8’s operations at all mining sites will be 100% allocated to self-mining.
Hut 8 Mining Corp. (TSX: HUT) announced that it has paid back its US$20M loan with Genesis Global Capital LLC (“Genesis”) as planned, in full. The repayment of this loan means an extra $U2.4M for Hut 8, driven by the savings from interest expenses of US$1.6M.
“Hut 8 initially took out this loan with Genesis in November 2019 when bitcoin was close to US$7,000. This loan provided Hut 8 additional leverage to significantly benefit our balance sheet, as our bitcoin (which now sits at 3012 Bitcoin on balance), has more than doubled its previous all time highs in 2017″ said Jimmy Vaiopoulos, Chief Financial Officer of Hut 8. “Hut 8 is now well capitalized. This full repayment of debt shows our position of strength in this fast growing industry.”
“The benefits of this loan and it’s repayment for Hut 8 signal the execution of our multi-pronged strategy to grow shareholder value,” said Jaime Leverton, CEO, Hut 8. “We look to reduce expenses without reducing the bitcoin on our balance sheet. We look for revenue diversification strategies to provide increased downside risk protection. This is what Hut 8 is about and what we intend to keep doing as we grow.”
As one of North America’s most innovative, oldest and highest installed capacity Canada-based Bitcoin miners, a summary of recent announcements are:
- As of February 17, 2021 Hut 8 has 3,012 bitcoin on its current balance sheet, 1,000 of these bitcoin are in a Genesis yield account generating a 4% yield paid out in USD.
- Hut 8 holds more self-mined bitcoin than any other publicly traded bitcoin miner in the world. This is a tremendous benefit as investors seek assets such as bitcoin as an inflationary hedge.
- Hut 8 attained its goal of 1.0E/H earlier last year and is on track for a 30%+ increase in energy capacity-maintains its position as leader in installed mining equipment and capacity.
- Hut 8 currently has 1,073 petahash per second (PH/s) installed with an anticipated increase to 1,300+ PH/s as new equipment comes online.
- Hut 8 ranked 11th out of 10,000 in the 2021 OTCQX® Best 50, a ranking of top performing companies traded on the OTCQX Best Market last year
- Hut 8 recently achieved its goal of Investment Banking research and earned a (BUY) rating from HC Wainwright investment bank. This is paramount in achieving our objectives of greater institutional investment and capital inflows.
- Hut 8 signed a Global and Canadian First: Bold Energy and Blockchain Innovation Play Through an Exclusive MOU with Global Energy Partner Validus Power Corp. with the intention to secure further capacity expansion and greater energy flexibility.