Mining company Hut 8 is closing its Bitcoin mining platform in Drumheller, Alberta, Canada.
According to a March 6 report from Hut 8, the platform is shutting down due to power outages and rising prices. Currently, Drumheller mines about 1.4% of Bitcoin (BTC) and reports about 11% of its hash rate.
“We determined that Drumheller’s profitability was significantly impacted by a variety of factors, including increased energy costs and underlying voltage issues.”
Asher Genoot, CEO of Hut 8
The company admits that the center's activities may resume in the future. Hut 8 retains the lease on the property and the value of the opportunity to reopen the property if market conditions improve.
Last week, Hut 8 announced the start of construction on a Bitcoin mining center in Culberson County, Texas, with an expected hashrate of 3.6 EH/s. Building a facility site is expected to cost less than $275,000 per MW, representing more than 40% savings, or approximately $18.5 million in upfront development costs per 100 MW expansion.
It's a great day for building, especially. when it comes to 40% savings compared to purchasing turnkey locations! Construction is underway at our newest site in Culberson County, TX: the 63 MW site is expected to be operational in the second quarter and will have self-mining capacity of up to 3.6 EH/s. For more information, see our… pic.twitter.com/LEG347mrEu
— Hut 8 (@Hut8Corp) February 27, 2024
In February, the company's Bitcoin production decreased compared to January. Last month, Hut 8 mined 292 BTC, compared to 339 BTC in January. At the end of the month, the company held 9,110 BTC. A similar dynamic has been observed at other major miners, including Marathon Digital, Riot Platforms and Bitfarms.
The decline in the percentage of BTC production from these companies ranged from 16% to 23% month over month.
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