Crypto miner Hut 8 surpassed 5K Bitcoin held in reserves

Published at: Nov. 11, 2021

In its third-quarter earnings release, Canadian cryptocurrency miner Hut8 announced that it surpassed its goal set earlier this year of holding 5,000 Bitcoins (BTC) in reserves through mining. Its Bitcoin balance now amounts to 5,053, for a total market value of $430 million.

During the quarter, Hut 8 generated 50.34 million Canadian dollars (CA$) in revenue and CA$23.37 million in net income, up from CA$5.75 million in revenue and a loss of CA$0.90 million in the prior year's quarter. The company hosts a sizable fleet of Application-Specific Integrated Circuit, or ASIC, machines used for Bitcoin mining. In addition, it deploys NVIDIA GPUs to mine Ethereum (ETH).

The company's total hash rate (Bitcoin and Ethereum mining combined), or the number of guesses per second needed to obtain a mathematical solution to mine a new block on a proof-of-work blockchain, amounts to 1.7 exahashes per second (1.7*10^18 hashes/s, EH/s). In context, the total hash rate of the entire Bitcoin network is 162 EH/s, according to data provided by Blockchain.com. As for Ethereum, that number stands at 817.06 terhashes per second (817.06*10^12 hashes/s, TH/s), according to data provided by 2Miners.com. The firm's contracted mining capacity for Ethereum stands at 1.6 TH/s.

Hut 8 adopts a hold-on-for-dear-life, or HODL, strategy when it comes to mining Bitcoin; that is, it does not seek to sell them under most circumstances. The firm also lends out its BTC to farm yields, and claims to mine close to 20 BTC per day.

Location of Hut 8's crypto mining operations. | Source: Hut 8 Q3 2021 Earnings Call Presentation 

The company operates in the Canadian province of Alberta with plans to expand to Ontario. It uses a mixture of natural gas, wind, and green energy for its mining operations.

Tags
Technology
Blockchain
Bitcoin
Ethereum
Business
Cryptocurrencies
Press Release
Mining
Bitcoin Mining
Environment
Canada
Hash Rate
Related Posts
No ‘blood coin’ for Kevin O’Leary as investor takes stand on Bitcoin energy consumption
Shark Tank and Dragon’s Den personality Kevin O’Leary is taking a stand against what he terms “blood coin,” that being Bitcoin (BTC) mined in China. The investor declared that he would only deal with “clean coin” — coins mined using renewable energy — from now on and suggested other institutions were starting to do the same. O’Leary took aim at the free-wheeling nature of Bitcoin production by pointing out that most other products in the world are manufactured according to institutional and regulatory compliance standards. O’Leary said, during an interview with CNBC: “We have compliance on large institutions, we have …
Technology / April 5, 2021
$3.3B Bitcoin mining company Griid to list on NYSE via SPAC deal
In a filing with the United States Securities and Exchange Commission on Tuesday, special purpose acquisition company, or SPAC, Adit EdTech Acquisition Corp, announced it would merge with Cincinnati-based Bitcoin (BTC) miner Griid at a $3.3 billion enterprise valuation. SPACs are blank check companies created for the sole purpose of acquiring other firms. After the deal consummates, Griid will list on the New York Stock Exchange under the ticker symbol GRDI. The deal is expected to close by the first quarter of next year. According to its investor presentation, Griid expects to mine 637 BTC this year with a total …
Technology / Nov. 30, 2021
Experts debate Bitcoin climate footprint in latest Cointelegraph Crypto Duel
In the latest Cointelegraph Crypto Duel, founder of Digiconomist Alex de Vries and CEO and founder of Blockchain for Climate Joseph Pallant debated the intensity of Bitcoin’s footprint and possible paths forward to reduce it. As pointed out by de Vries, Bitcoin’s energy consumption has been increasing together with its network. The analyst predicts its carbon footprint could increase tremendously as Bitcoin gets closer to mass adoption. “I fear that this will quickly get completely out of control if adoption increases a lot more”, he said. According to de Vries, as long as Bitcoin functions with a proof-of-work system, bringing …
Technology / April 30, 2021
Bitcoin greenwashing? Lawmakers want clearer definitions of green energy
Legislators in the United Kingdom have asked for greater regulatory powers to combat the rise of financial “greenwashing” — a deceptive practice where a company overstates or fabricates the extent of its green energy usage. A report by the House of Commons cross-party Treasury Committee urges the U.K. government to sharpen its definition of environmentally conscious investments and to consult on the prospect of attaching “green labels” to financial products. The report notes that “green” claims attached to financial investments are often exaggerated, and can fail to align with customer expectations: “It is clear that in some cases the labels …
Technology / April 23, 2021
Bitcoin miners believe global hash rate to grow ‘aggressively’
Bitcoin (BTC) seems to be on everyone’s mind lately as the world recently witnessed the price of BTC take a rather unexpected bearish turn this month. On January 21, 2022, Bitcoin reached six-month lows, sinking below $40,000 for the first time in months. While some panicked, other industry experts pointed out that the Bitcoin network has become verifiably stronger than ever before. The growth of the Bitcoin network has become apparent, as hash rate figures for BTC continue to set new highs this month. For example, on Jan. 22, the BTC network recorded an all-time high of 26.643 trillion with …
Technology / Jan. 30, 2022