Hut 8 Closes Drumheller Mining Facility Despite Bitcoin Price Momentum

Despite bitcoin hitting recent highs, Hut 8 Corp (TSX: HUT) is scaling back certain of its operations in an effort to optimize its business. The company has revealed it will be closing its Drumheller location in Alberta.

The closure of the facility is effective immediately, with efficient miners that exist at the city to be transferred to Hut 8’s facility in Medicine Hat, while older miners are to be retired from operations. The lease at the site meanwhile will be maintained, providing the company with optionality should the price of bitcoin and the economics of mining improve.

Efficient miners are the facility amount to 130 PH/s of hashrate for the company.

“We have determined that the profitability of Drumheller has been impacted significantly by various factors, including elevated energy costs and underlying voltage issues,” commented CEO Asher Genoot.

READ: Hut 8 Changes Strategy, Bitcoin Now To Be Used To Fund Growth

The closure is expected to improve cash flow while reducing the average cost to produce bitcoin. A pro forma increase of 11% is expected for bitcoin mined per EH.

Hut 8 Corp last traded at $10.21 on the TSX.


Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Leave a Reply

Video Articles

Endeavour Mining Q1 Earnings: Cash Flow Is King

G Mining Oko West Feasibility: Move Fast, Break.. Nothing?

New Gold Q1 Earnings: What’s Behind The Market’s Surprising Reaction?

Recommended

First Majestic Posts Record Cash Flows In Q1 As Production Costs Fall

Brazil Potash Secures Funding In Support Of US$2.5 Billion Autozales Project

Related News

Hut 8: Canaccord Initiates Coverage With US$12 Price Target

On September 23, Canaccord initiated coverage on Hut 8 Mining (TSX: HUT) with a US$12...

Thursday, September 30, 2021, 11:39:00 AM

Bitfarms: Recent M&A Transaction Highlights Company’s Valuation

Last week, Cleanspark (NASDAQ: CLSK), a publicly listed microgrid energy software company, acquired the private...

Monday, December 14, 2020, 12:07:53 PM

Hut 8 Q3 2024: Pivot Sparks Revenue Growth, But Escalating Costs Loom

Hut 8 Corp. (TSX: HUT) reported its third-quarter earnings on Wednesday with revenue of $43.7...

Wednesday, November 13, 2024, 01:42:00 PM

The Bitcoin Network Needs More KYC Controls – The Daily Dive

Joining us today on the Daily Dive is that of Suzanne Ennis, VP of Investor...

Thursday, March 17, 2022, 01:30:00 PM

Hut 8 Mines 265 Bitcoin In November 2021

Hut 8 Mining Corp. (TSX: HUT) reported today its production results for the month of...

Thursday, December 2, 2021, 09:27:00 AM