- Hut 8, a crypto mining company based in Toronto, has announced plans to increase its self-mined Bitcoin holdings
- The Chinese government’s crackdown on Bitcoin mining has resulted in a significant drop in the network’s popularity
- Along with Marathon Digital Holdings, Hut 8 is one of the most well-known Bitcoin mining companies
Jaime Leverton, the CEO of Hut 8, stated that the company was on track to mine up to 3 additional BTC per day by the end of August. Hut 8, a crypto mining company based in Toronto, said it plans to increase its self-mined Bitcoin holdings because it expects to be able to increase its hash rate by 400 percent.
Hut 8 plans for 5000 Bitcoins by 2021 end of 2021!
Hut 8 announced on Monday that by the end of 2021, it plans to hold 5,000 self-mined Bitcoins (BTC) – roughly $ 172 million – up from its current 3,806 BTC. The expected crypto holdings are based on the company’s ability to increase its hash rate to 2.5 – 3.0 EH by the end of 2021 and to around 6 EH by mid-2022, a 400 percent increase over current levels.
We now have 1.2 Exahashes in production, and the ongoing installation of new equipment puts us on track to produce an extra 2-3 Bitcoins per day by the end of August, on top of our current output rate. Hut 8 CEO Jaime Leverton said the current rate is 6.2 to 7.3 Bitcoins per day.
Hut 8, which completed a public offering on June 15 and raised more than $ 93 million in gross proceeds, is expected to increase its Bitcoin holdings. The funds will be used to fund previously announced investments with Nvidia, Chinese supplier MicroBT, and Validus Power for its mining-related energy needs, according to the company.
Chinese miners moving to Texas
The Chinese government’s crackdown on Bitcoin mining has resulted in a significant drop in the network’s hash rate, as many businesses have been forced to close, particularly in Sichuan province. Due to the subsequent and continuing exodus of miners to China, Hut 8 expects network difficulties to decrease by up to 20% on July 1. According to some reports, Chinese miners are considering relocating to Texas, which has low-cost renewable energy and less stringent regulations than many other states.
Along with Marathon Digital Holdings, Riot, and Hive Blockchain, Hut 8 is one of the largest publicly traded Bitcoin mining companies. Since the beginning of the year in 2021, the company’s stock has gained modestly, rising more than 24% to $ 3.80 at the time of publication.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.