The publicly-listed Canadian digital asset mining company revealed that it held 5,518 self-mined bitcoin at the end of 2021, a 97% increase year-over-year. The company currently holds more self-mined bitcoin than any other publicly traded company.
The report also showed that the company mined 276 BTC in December 2021 with its daily production numbers increasing from 8.83 BTC/day in November to 8.9 BTC/day in December.
Hut 8 reported growth in all aspects of mining including total installed hashrate which rose 125% year-over-year reaching 2 EH/s.
The December growth can be attributed to the company’s addition of new miners. In its Drumheller, Alberta location, Hut 8 added 2,782 mining machines to its existing fleet. It also purchased an additional 2,505 from Foundry Digital that were already installed at its Medicine Hat, Alberta location.
CEO Jaime Leverton commented on the company’s growth, stating, “2021 has been a year of transformation for Hut 8, with a focus on not only rebuilding and upgrading, but future-proofing our operations.”
A third mining site is currently being built in North Bay, Ontario with completion anticipated towards the end of Q1, 2022. The site’s power will come from a blend of sources such as by-product steam, hydrogen, and natural gas as well as a secondary geothermal system. This will see Hut8’s power costs at the site be as low as CAD0.027/KwH. Upon completion, Hut 8 will have three fully-functioning mining locations in Canada.
Between the additional equipment and the third mining location, Hut 8 is expecting that these advancements will lead to an increased hash capacity of 3.35 EH/s by the end of Q1 in 2022.
To fund the purchase of the additional mining equipment and new location, Hut 8 received a $30 million loan from Trinity Capital in December. The terms of the loan include a 9.5% interest rate and repayment within 3 years.
While Hut 8 is a relatively new mining company, it has achieved notable success considering that it’s only been involved in the digital asset mining industry since 2018. The company is part of a group of publicly listed mining companies including Marathon Digital Holdings and Riot Blockchain that are heavily investing in the expansion of their bitcoin mining operations. The bitcoin network's total hashrate sits near an all time high, as does the mining difficulty.
Hut 8 recently announced that they will become a sponsor partner of bitcoin podcaster Peter McCormack owned football club Real Bedford.