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.
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