Hut 8 Mining Corp. mined 112 Bitcoins in October amid recent developments, including the merger with US Bitcoin Corp. The mining firm's output in the period was equal to a daily production rate of around 3.6 Bitcoins.
During October, Hut 8 sold 365 Bitcoins for CAD$14.6 million. This translates to an average selling price of approximately CAD$39,980 per Bitcoin. As a result, Hut 8 maintains a significant Bitcoin reserve of 9,113, according to the statement released by the company yesterday (Monday).
Hut 8 installed an ASIC hash rate capacity of 2.6 EH/s in its Alberta facilities by the end of October. According to the company, this resulted in a production rate of 43.1 BTC/EH.
Hut 8 Expands Operations
Besides that, during the period, Hut 8 secured approval from the Ontario Superior Court of Justice for a bid to acquire four natural gas power plants in Ontario, totaling approximately 310 MW. This acquisition includes a Bitcoin mine in North Bay. Hut 8 anticipates that this move, coupled with its proposed business combination with US Bitcoin Corp., will strengthen its operations.
Jaime Leverton, the CEO of Hut 8, mentioned: "While our mining results remained steady month over month, we made meaningful progress toward building an infrastructure-first, diversified operation that we believe will be the first in our industry. Between being granted approval to submit a stalking horse bid for approximately 310 MW of natural gas power plant assets in Ontario, including our former North Bay site, and our work to close our proposed business combination with US Bitcoin Corp., we are making headway toward creating a new Hut 8."
In September, Hut 8 mined 111 Bitcoins, a reduction from the previous year but in line with the broader industry trend. Hut 8's Bitcoin production for the period equated to an average daily production rate of approximately 3.7 BTC. This figure marked a modest increase from the 103 Bitcoins mined in August. However, when compared to the same period a year ago, production declined by 166 BTC from 277 Bitcoins in September 2022.
As of September 30, the company's Bitcoin reserve stood at 9,366. This is a substantial increase compared to the previous year, when the total Bitcoin reserve was at 8,388. The company's installed ASIC hash rate capacity at its Alberta facilities stood at 2.6 EH/s at the end of the month, resulting in a production rate of 42.7 BTC per EH.
Hut 8 Defies Challenges Facing Crypto Mining Firms
It's worth noting that the decline in mining production is not unique to Hut 8; it's a trend seen across publicly traded companies in the crypto-mining sector, Finance Magnates reported. This decline has led analysts to question the profitability of Bitcoin mining, especially in the face of challenges like increasing competition and regulatory changes.
Hut 8's Q2 revenue plummeted from USD $44 million in the same period last year to USD $19 million, marking a steep decline of 56% year-over-year. This is a reflection of the company's struggles during the quarter. In addition, the company's Bitcoin mining output saw a significant reduction of 58%, with only 399 Bitcoins mined in the quarter.
Hut 8 faced various operational challenges during the quarter that contributed to its revenue and mining output decline. The company reported a drop in profit from mining operations, which drastically fell from USD $14.9 million in the second quarter of 2022 to USD $3.2 million.
