Hut 8 Mining (TSX: HUT) continues to experience operating difficulties at its Drumheller, Alberta facility. The firm is said to be operating at just 15% of its installed hashrate at the facility as a result of equipment failures.
The problems at the Drumheller facility are said to be related to high energy input levels that caused the equipment failures, with the company hiring more staff to enable faster repairs on the equipment. Repairs are said to currently be underway, with firmware being installed to reduce maximum output voltages in an effort to correct the problem.
“We are very aware of the impact that the issues at Drumheller are having on the broader business: they are complex and challenging, but we have made meaningful progress and have a roadmap to remediation,” commented Hut 8’s CEO Jamie Leverton.
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The Drumheller facility is also said to be experiencing elevated energy prices, creating further headwinds, while the company looks for a means to place the 7,000 miners removed from its North Bay, Ontario facility back into operation.
Equipment failures were first noted to have occurred in February, with production being heavily impacted in the time since.
The struggles with the facility resulted in just 132 bitcoin being produced during the month of April, a decline from the 188 produced in January, and the 156 produced in February. The figure was a slight improvement however from the 131 bitcoin produced in March.
The installed hashrate at the end of the month meanwhile sat at 2.6 EH/s, while Hut 8’s balance of unencumbered bitcoin sits at 9,265.
Hut 8 Mining last traded at $2.40 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.
