One of the oldest and largest mining pools in the world, Hut 8 Mining has announced the release of its production update for December 2021. The company also provided an update on its self-mined Bitcoin reserves and issued a statement on the US$30 million financing with Trinity Capital. Let’s find out what’s in store for Hut 8 and how this might affect your personal cryptocurrency portfolio.
Since 2018, Hut 8 Mining Corp. (Nasdaq: HUT) (TSX: HUT) (“Hut 8” or “the Company”) has pioneered open and decentralized digital asset mining in North America.
Mining Production Highlights for December 2021:
- An average of 8.9 Bitcoins were mined every day, resulting in 276 Bitcoin mined;
- According to Hut 8’s Hodl strategy, all self-mined Bitcoins for December were deposited into custody;
- By the end of 2021, there are 5,518 Bitcoins in reserve, a 97% increase over the year before; and
- A 125% increase in hashrate from December 31, 2020 to now is the installed operating capacity of 2.0 EH/s.
Operations Updates for December 2021:
- Foundry Digital sold the Company 2,505 MicroBT M30S machines that were already installed at the Company’s site in Medicine Hat, Alberta. During December, this fleet of miners generated 228 PH/s of incremental hashrate;
- MicroBT installed 2,782 more efficient M30S and M31S+ machines at its Drumheller, Alberta, plant;
- There are ongoing electrical upgrades at the Medicine Hat site that will allow for maximal hashrate efficiency from the delivery of new MicroBT miners. These upgrades will contribute an additional 450 PH/s by February 2022;
- The Company has advanced development and construction of its third mining site in North Bay, Ontario. Construction of the data center structure is underway, while the ventilation system and custom racking system have been completed. By the end of Q1 2022, North Bay is expected to be powered up and fully operational at 35 MW, contributing approximately 850 PH/s of additional hashrate to our operations,
- Supply chain issues, including unprecedented flooding in western Canada, delayed upgrades and development efforts in Alberta and Ontario throughout December.
“This has been a tremendous year for our industry and I congratulate not only the Hut 8 team, but every single one of our peers who have worked hard to build meaningful operations in North America,” said Jaime Leverton, CEO of Hut 8 Mining. “2021 has been a year of transformation for Hut 8, with a focus on not only rebuilding and upgrading, but future-proofing our operations. We are business-building technologists, with a focus on diversification, while keeping Bitcoin mining at our core. I have been driving innovation and transformation in the technology industry for over 20 years and have never been more excited or energized when looking forward to the year ahead.”
Hut 8 Holdings Inc. – The Next Generation Of Bitcoin Mining
Hut 8 Holdings Inc., a wholly owned operating subsidiary of the Company, and Trinity Capital Inc (“Trinity Capital”) entered into a master loan facility for US$30 million on December 30, 2021. Providing non-dilutive growth capital to the company, the equipment financing was structured so that collateral support is limited to certain new MicroBT machines to be installed at the company’s facilities in Medicine Hat, Alberta, and North Bay, Ontario. There is a 9.5% interest rate on the loan and it is repayable over three years.
“We are pleased to achieve this financing milestone with Trinity Capital,” commented Shane Downey, CFO of Hut 8. “This debt financing allows us to expand our capital structure and overall liquidity, while achieving an attractive cost of capital with limited security, in a traditional equipment financing arrangement.”
Managing Director of Equipment Financing at Trinity Capital, Ryan Little, said, “We are thrilled to partner with Hut 8, one of the largest digital asset miners in the world.” “Their combination of experienced leadership, vision and innovation makes Hut 8 unique, and we look forward to partnering with them on this journey forward.”
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