Hut 8 Mining Corp. (TSX: HUT) announced today its planned expansion to increase installed hashrate to approximately 2.5 – 3.0 EH by the end of 2021 and to 6.0 EH by mid 2022. The company currently operates at 1.2 EH.
As a result, Hut 8 expects to increase average production from 6.2 – 7.3 bitcoin to 8 – 10 bitcoin per day. Assisting this production increase, as noted by the company, is a decrease in network difficulty due to the ongoing crackdown on miners in China, with miners in that region slowly dropping from the network. The company also expects self-mined bitcoin held to grow from 3,806 bitcoin to 5,000 bitcoin by the end of 2022.
The company expects this hashrate upgrade as a result of a number of capital investments: the installation and deployment of the first 2,400 of the 5,400 Whatsminer M30S bitcoin mining machines purchased via Foundry Digital, and the ongoing installation of 10,000 NVIDIA cryptocurrency mining processors that are expected to add 1,600 GH hashrate.
Hut 8 also relayed that the proceeds from its recently closed $115.0 million bought-deal offering will fund the remaining investment in the previously announced power purchase agreement with Validus Power, as well as the downpayment for the planned 100 MW-facility in Alberta. The agreement includes a $25.0 million paydown investment, $15.0 million of which was already paid in April 2021.
The company also intends to use the proceeds to fund the remaining investment in the US$30.0 million NVIDIA cryptocurrency mining processors purchase, the associated Dell server infrastructure, and the delivery of the remaining bitcoin mining machines
Hut 8 Mining Corp. last traded at $4.53 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.