Investing.com | Editor Ambhini Aishwarya
Published Oct 11, 2023 07:15AM ET
Bitcoin mining firm Hut 8, listed on NASDAQ, has maintained its reserves of 9,366 BTC despite the current bear market and high operational costs. The company generated 111 BTC in September without selling any assets for operational funding, as confirmed by Erin Dermer, Senior Vice President of Communications at Hut 8. This decision reflects the firm’s financial stability and its anticipation of a bull market following the imminent Bitcoin halving event.
The Alberta-based miner achieved daily production rates of 3.7 BTC and a monthly total of 42.7 BTC/EH in September, with a mining capacity of 2.6EH/s. However, increased network difficulty and production costs have impacted revenues, particularly in light of the FTX crash. In Q2 2023, the company’s revenues were $19.8 million, less than half of the $43 million reported in Q2 2022.
On Tuesday, Dermer announced that Hut 8 is undergoing a strategic merger with U.S. Data Mining Group Inc., to form Hut 8 Corp. This move aims to bolster its financial standing through diversified fiat revenue streams.
Furthermore, Hut 8 is exploring high-performance computing, a field popular among Artificial Intelligence firms, as another avenue to boost revenues. This strategy comes amidst a significant revenue drop from $43.8 million in Q2 last year to $19.2 million this year due to equipment failures and increased network difficulty.
Despite these challenges and expected post-halving obstacles when miner rewards halve after the Bitcoin “halving” event in April, Hut 8 remains bullish about a subsequent bull market. The firm’s CEO Jamie Leverton has also announced a judicial arrangement with U.S. Data Mining Group, Inc., indicating a diversification into hosting and managed infrastructure operations.
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Written By: Investing.com
