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Mining Company Hut 8 Extracts 36% Less Bitcoin After Halving

2 mins
Updated by Ryan Boltman
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In Brief

  • Hut 8's Bitcoin production fell by 36% in April due to relocation and the Bitcoin halving.
  • Unlike industry averages, Hut 8 saw a steeper drop, mining only 148 Bitcoin.
  • The move consolidated operations to a single, more efficient Texas location, aiming to minimize downtime.
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In April, Hut 8, a major player in North America’s Bitcoin mining scene, reported a significant 36% reduction in its Bitcoin production. This drop has come in the wake of the latest Bitcoin halving event and the relocation of the company’s mining operations. 

Unlike the broader decline across the industry, which saw a decrease in production by 6-12%, Hut 8 experienced a steeper reduction, with its April output totaling only 148 Bitcoin, as compared to March.

Hut 8 and the Impact of the Bitcoin Halving

This decline was predominantly due to the shift of its mining hardware from the Kearney and Granbury locations to Texas. This site, situated in Salt Creek with a robust 63-megawatt capacity, was energized over three months after construction began. 

This transition is part of a broader strategy to consolidate Hut 8’s mining operations within a single, more efficient location.

The reduction in output coincided with a drop in the company’s hashrate, which declined by 51% from its peak in December, shortly after Hut 8 merged with USBTC. The company’s CEO, Asher Genoot, emphasized that over 25,000 miners were moved in just eight days. It was a quick transition aimed at minimizing operational downtime.

Read more: 5 Best Platforms To Buy Bitcoin Mining Stocks Ahead of 2024 Halving

Further enhancing its capabilities, Hut 8 has expanded its overall mining, hosting, and managed power capacity to over one gigawatt. This includes the partial activation of a new 215-megawatt site in Ward County, Texas, dedicated to Ionic Digital.

Hut 8 Share Price.
Hut 8 Share Price. Source: Finance.Yahoo

On the other hand, Hut 8 shares plummeted 7.46% after the announcement to stand at $8.19, since before its report, it had a drop of just 0.98%. Hut 8 is one of the smallest mining companies on the market, with a market capitalization of $732.8 million.

On another note, GoMining has raised $3 million through a direct investment from Bitscale Capital, a top international VC fund. The agreement will see Bitscale Capital acquire equity worth $3 million in the shape of GOMINING, the native cryptocurrency token.

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