Hut 8 Halts Bitcoin Mining in Drumheller Amid Rising Costs and Power Issues, Explores New Ventures in Texas

Mining enterprise Hut 8 is ceasing operations of its Bitcoin mining operation located in Drumheller, Alberta, Canada, due to challenges including power disruptions and increasing costs. The Drumheller site, responsible for mining approximately 1.4% of Bitcoin’s total, utilizes about 11% of its computing power for mining activities.

“Our analysis has revealed that Drumheller’s profitability has been substantially affected by a combination of high energy prices and electrical infrastructure issues,” stated Asher Genoot, CEO of Hut 8.

The company has acknowledged the possibility of recommencing operations at this center should market conditions become favorable. Hut 8 intends to maintain its lease on the property, preserving the option to reactivate the mining operations when the opportunity arises. In recent developments, Hut 8 disclosed plans to initiate a new Bitcoin mining facility in Culberson, Texas, aiming for a hashrate of 3.6 EH/s. This new facility, which will operate with 63 MW of power, is expected to be constructed at a cost that is roughly 40% lower than its market purchase equivalent.

Furthermore, the company reported a decrease in Bitcoin production in February compared to January, with a tally of 292 BTC against January’s 339 BTC. By the end of February, Hut 8’s Bitcoin holdings were documented at 9,110 BTC. This trend of reduced Bitcoin production was not unique to Hut 8 but was also noted among other leading mining entities such as Marathon Digital, Riot Platforms, and Bitfarms, with production dips ranging from 16% to 23% on a month-to-month basis.

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