Hut 8 shuts down Bitcoin mining site in Canada, citing energy costs
Mining company Hut 8 is shutting down its Bitcoin mining platform in Drumheller, Alberta, Canada.
According to a Hut 8 report from Mar. 6, the platform will be shut down due to power outages and rising prices. Currently, Drumheller mines about 1.4% of Bitcoin (BTC) and spends about 11% of its hash rate.
“We have determined that the profitability of Drumheller has been impacted significantly by various factors, including elevated energy costs and underlying voltage issues.”
Asher Genoot, Hut 8 CEO
The company admits that the center’s activities may resume in the future. Hut 8 will retain 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 of a Bitcoin mining center in Culberson County, Texas, with an expected hashrate of 3.6 EH/s. The construction of a facility site is scheduled to be less than $275,000 per MW, representing more than 40% savings or approximately $18.5 million in upfront development costs per every 100 MW expansion.
In February, the company’s Bitcoin production decreased compared to January. Last month, Hut 8 mined 292 BTC compared to 339 BTC in January. The firm held 9,110 BTC at the end of the month. Similar dynamics were observed among other large miners, including Marathon Digital, Riot Platforms, and Bitfarms.
The decline in the percentage of BTC production of these companies ranged from 16% to 23% from month to month.
