Hut 8 Mines 276 Bitcoin In December 2021; Takes US$30 Equipment Financing Loan From Trinity Capital

Hut 8 Mining Corp. (TSX: HUT) reported today its production results for the month of December 2021. The firm mined 276 bitcoin for the month, averaging at 8.9 bitcoin per day.

The monthly output is an increase from November’s production of 265 bitcoin, averaging 8.83 bitcoin per day.

All of the company’s self-mined bitcoin for the month were deposited into custody. Total bitcoin balance at the end of the month came in at 5,518 bitcoin, valuing the reserve assets at $324.9 million as of this writing.

The company also relayed that it currently has an installed hashrate of approximately 2.0 EH/s from last month’s 1.7 EH/s.

The blockchain firm also announced the US$30 million senior secured equipment financing term loan with Trinity Capital, with the collateral support limited to “certain new MicroBT machines being installed at the company’s Medicine Hat, Alberta and North Bay, Ontario sites.” The loan carries a 9.5% interest and is repayable over its 3-year term.

“This debt financing allows us to expand our capital structure and overall liquidity, while achieving an attractive cost of capital with limited security, in a traditional equipment financing arrangement,” said CFO Shane Downey.

In December 2021, the company purchased 2,505 MicroBT M30S miners from Foundry Digital, which is expected to put its overall computing power at 1.94 EH/s.

Hut 8 Mining Corp. last traded at $10.32 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