Hut 8 has always been a leading miner and is now lagging behind the competition. This is also reflected in the stock’s performance, which cannot keep up with much of the industry.
Hut 8 wants to optimize
The closure of the Drumheller operation in Canada represents a significant change in Hut 8’s operations. Effective immediately, it will cease operations there and move its most efficient miners to another facility in Alberta, Canada.
This decision, made based on an in-depth analysis of declining profitability, rising energy costs and power problems, should ultimately ensure more streamlined business operations.
“After an in-depth analysis, we have determined that Drumheller’s profitability is significantly limited by several factors, including increased energy costs and power issues,” said CEO Asher Genoot.
The company will also retain the lease on the Drumheller location. So that it can restart operations there if conditions continue to improve. This new strategy should boost cash flows and reduce the cost of mining bitcoin by 11 percent.
Expanding in America
Apart from closing the operation in Canada, Hut 8 is also looking to the future. This of course includes expansions and these will take place in Texas, USA. In Texas, Hut 8 is investing $17.3 million to build a new facility.
That investment is in line with Hut 8’s strategic goal to properly position itself for the next bitcoin halving.
By reducing expenditure on the construction of the project from 29 to 17.3 million, Hut 8 shows that they really focus on efficient expansion. “Our in-house development team makes it possible for us to build quickly and cost-effectively,” says an optimistic Genoot.
The coming months or years will show whether Genoot’s strategy is sufficient to get Hut 8 back on track.
Source: https://bitcoinmagazine.nl/nieuws/geplaagde-bitcoin-miner-moet-noodgedwongen-canadese-mijn-sluiten
