Hut 8 Sees Equipment Fail At Drumheller Facility As Fast As It Can Be Repaired

Hut 8 Mining (TSX: HUT) appears to be keeping its operation moving along as a result of its prior “hodl” strategy, revealing this morning that it produced 147 bitcoin during the month of May, while selling 179 bitcoin to meet obligations.

The production figure of 147 bitcoin was an improvement from the 132 produced in the month of April, however the figure is still a notable decline from the 156 produced in February and the 188 produced in January. Total bitcoin in reserve meanwhile fell to 9,233.

The company also revealed it is continuing to see issues with repairing problems at its Drumheller, Alberta location, identifying that custom firmware has been installed on miners, but repair and restoration continues as hardware fails from power surges and the facility struggles with frequent curtailments. The company commented that, “as individual miner hashboards are repaired and re-installed, other hashboards are failing and require repair, which is impairing our hashrate and production,” suggesting Hut has a major problem on its hands.

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As a result of the challenges, the facility will take longer than the initially forecasted 10-12 weeks to be fully operational.

READ: Hut 8 Reports Major Equipment Failures At Drumheller Facility

“While the re-energization at Drumheller has been challenging, our team continues to show grit and perseverance and is making progress,” commented CEO Jamie Leverton.

Separately, the “bulk” of the 7,000 miners removed from the North Bay facility are still not operationalized elsewhere, with options for doing so to be finalized reportedly soon.

The company also entered into a five year arrangement with a government client for data centre operations, although no details were provided.

Hut 8 last traded at $2.62 on the TSX Venture.


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.

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