Hut 8 Mining Corp is a leading Canadian enterprise engaged in the business of mining cryptocurrency.
The publicly traded entity claims to have industrial-scale operations for mining bitcoins using a complex computation process. In addition, it says that its cash flow generation is based on blockchain technology and bitcoin.
The bitcoin miner claims to be the first such company to listed on a stock exchange in Canada. Its stocks trade on the TSX Venture with the symbol ‘HUT’.
Bitcoin is one of the largest cryptocurrencies present existing in the world. The firm claims that at present there are 18.1 million bitcoins and only 21 million bitcoins will exist at any time in future.
The blockchain technology on which the company’s revenue is based on, is a cloud-based digitally maintained public ledger consisting of all the bitcoin transactions. These transactions are maintained and managed by a community of users. The company’s operations are majorly engaged in bitcoin mining, which is a complex process of solving difficult mathematical puzzles to secure the blockchain and verify related transactions.
Hut 8 claims to rapidly expand its Blockboxes through owned sites and network. It reportedly depends on the operating optimization that includes price of bitcoin, electricity costs, mining difficulty and operational boxes.
As of 2021, the company has nine BlockBoxes for an institutional client. In addition, it overall owns 94 BlockBoxes with an operational capacity of 109 megawatts.
The operational units are located at the following sites:
• Drumheller in Alberta: Consists of 38 BlockBox datacenters with an operational capacity of 43 megawatts and 338 Petahashes per second (PH/s).
• Medicine Hat in Alberta: Comprises 56 BlockBox datacenters with an operational capacity of 67 megawatts.
In March 2018, Hut 8 had entered into an agreement with City of Medicine Hat (CMH) for 42 megawatt-electricity supply and land lease. Under this agreement, the bitcoin-focused firm constructed its mining facilities near CMH’s Unit 16 power plant.
By July 2018, 40 BlockBoxes were operational, the Canadian firm claims. The company reportedly leverages its partnership with a North American blockchain technology company, Bitfury Group Ltd, which is fully equipped with hardware and software infrastructure. In 2019, it acquired nine Blockbox ACTM data centers from Bitfury Group on September 9, 2019.