Bitcoin Miner Hut Eight to Add 275 PH/s of Mining Capability With $8.3M Capital Increase

By | July 1, 2020

Hut Eight Mining Corp. has raised $8.three million from the sale of 6% of its shares to traders. The Canadian bitcoin miner initially supposed to lift $7.5 million from the sale, nevertheless it was oversubscribed.

Totonto Inventory Trade-listed Hut Eight issued about 5.Eight million “items” at a worth of $1.45 every. Every unit is comprised of 1 frequent share. From this, traders have the choice to purchase one other share for $1.80 between now and December 2021.

The Alberta-based miner stated funds from the providing shall be used to improve its vary of mining {hardware} together with Utility-Particular Built-in Circuit (ASIC) miners. The improve will add as much as 275 petahash per second (PH/s) to Hut 8’s present mining capability of 952 PH/s.

As soon as put in, the brand new machines, which embody “extra environment friendly processing chips from Microbt” will even add 12.6 megawatts (MW) of energy to the corporate’s present 107 MW most working capability.

“Hut Eight has been testing the Microbt gear for the previous three months in preparation of this improve… [we] count on to obtain gear between July and November 2020,” stated the agency in a press statement.

In latest months, Hut Eight has seen the quantity of bitcoin mined at its knowledge facilities in Canada decline. Through the first quarter of 2020, the corporate extracted 1,116 BTC, down 54% from 2,405 BTC mined within the comparable 12 months in the past interval.

The corporate blamed the decline on “the growing community problem” which “impacted…manufacturing negatively with a lot fewer bitcoin mined.” For the March quarter, Hut Eight reported that its web loss widened to $8.four million from $6.1 million a 12 months earlier.

The Canadian miner is now hoping that its newest acquisition of extra environment friendly mining gear will assist turnaround firm fortunes, already dealing with a squeeze from the latest bitcoin provide reduce occasion, which diminished the bonus paid to miners by 50% to six.25 BTC per block.

Shares of Hut Eight are up 2% at CAD$1 (~$0.73) in Toronto buying and selling on Tuesday. During the last 52 weeks, the inventory has reached a low of $0.37 and a excessive of $1.99.

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