Hut 8 Corp (TSX: HUT) fell nearly 10% after the market open this morning following weaker than expected production results for the month of March. The company reported producing just 231 bitcoin for the month.
Production was down by just shy of 21% for its self mining operations, falling from 292 bitcoin produced in February. The decline is attributed to a falling hashrate for deployed miners, which dropped from 7.2 EH/s to 5.4 EH/s as the company continues to close inefficient facilities. The company in march notably announced the closure of its Drumheller facility in an effort to retire inefficient miners, while efficient miners were relocated to other facilities.
Hashrate was also reduced as a result of changes at the Kearney and Granbury locations, which are seeing miners moved to the Salt Creek and Alpha facilities. The changes to deployed hashrate is said to enable the company to “maintain full control of [their] fleet and drive down [their] energy costs going into the halving.”
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READ: Hut 8 Closes Drumheller Mining Facility Despite Bitcoin Price Momentum
Deployed miners under management for the Managed Services segment meanwhile decreased from 218.6K in February to 210.5k in March, reducing hashrate under management to 22.6 EH/s, from 23.4 EH/s. Hashrate under the Hosting segment remained flat at 8.7 EH/s, while deployed miners increased marginally to 76.8k.
The company is said to hold 9,102 bitcoin on its balance sheet as of the end of March, down from 9,110 bitcoin at the end of February. The firm collectively has 884 MW of energy capacity under management, and 25.5 EH/s of total hashrate under management.
Hut 8 Corp last traded at $12.14 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.
