Hut 8 in Deal to Become 100% Self-Mining Company

The digital asset miner will buy out all hosted rigs at its Medicine Hat mining facility in Alberta.

AccessTimeIconApr 19, 2022 at 2:18 p.m. UTC
Updated Apr 19, 2022 at 2:54 p.m. UTC

Aoyon Ashraf is managing editor with more than a decade of experience in covering equity markets

Canadian crypto miner Hut 8 (HUT) has inked an agreement to purchase all 960 Whatsminer M31S+ rigs from hosting client Taal.

  • The purchase of the machines will increase Hut 8’s total hashrate by 81 petahash per second (PH/s) to 2.62 exahash per second (EH/s), said the company in a press release.
  • The deal is expected to close on May 1, and will make Hut 8 an owner of the mining rigs, rather than having to pay rent for their usage to Taal.
  • “The incremental capacity will deliver an immediate hashrate benefit as ASIC miners are already on-site, installed and hashing," said Hut 8’s CEO Jaime Leverton in the press release. The company on April 5 said it was mining an average of 11.1 bitcoins per day in March, and held 6,460 bitcoins on its balance sheet.
  • Mining peer Argo Blockchain (ARB) in March made a similar move to become 100% self-mining with a deal for a swap of mining rigs with its hosting client, Core Scientific.
  • Hut 8's stock is up about 3% on Tuesday morning, inline with its mining peers as bitcoin (BTC) gained more than 5% to $41,660.

Read more about

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

CoinDesk - Unknown

Aoyon Ashraf is managing editor with more than a decade of experience in covering equity markets

CoinDesk - Unknown

Aoyon Ashraf is managing editor with more than a decade of experience in covering equity markets