Crypto miner Hut 8 surpasses 5K Bitcoin held in reserves

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In the release of its third quarter results, Canadian cryptocurrency miner Hut8 announced that it had exceeded the target set earlier this year of holding 5,000 Bitcoins (BTC) in reserves through mining. . Its Bitcoin balance now stands at 5,053, for a total market value of $ 430 million.

During the quarter, Hut 8 generated 50.34 million (CA $) (valued at approximately $ 40 million) in revenue and 23.37 million C $ (approximately $ 18.57 million) in net income, compared to $ 5.75 million in revenue (approximately $ 4.57 million) and a loss of C $ 0.90 million (or $ 750,000) in the prior year quarter. The company hosts a large fleet of application-specific integrated circuit machines, or ASICs, used in Bitcoin mining. Additionally, 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 get a mathematical solution to mine a new block on a proof-of-work blockchain, stands at 1, 7 exahash 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 terahashes per second (817.06 * 10 ^ 12 hashes / s, TH / s), according to data provided by 2Miners.com. The company’s contract mining capacity for Ethereum stands at 1.6 TH / s.

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

Location of Hut 8’s crypto mining operations. Source: Presentation of the call on Hut’s 8th quarter 2021 results

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

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