TORONTO, June 30, 2021 /CNW/ - Hut 8 Mining Corp.
(NASDAQ: HUT) (TSX: HUT) ("Hut 8" or the "Company"), one of
North America's largest,
innovation-focused digital asset mining pioneers, supporting open
and decentralized systems since 2018, is pleased to provide the
following corporate update. All figures are in Canadian dollars
unless otherwise stated.
Hut 8 has executed on a $44.373 million
USD purchase of 11,090 MicroBT M30S, M30S+ and M31S miners
from SuperAcme Technology (Hong
Kong) Limited ("SuperAcme"), representing approximately
$44/Terahash. The miners are expected
to be delivered starting in October
2021 and full deployment is anticipated to be complete by
December 2021. This purchase
complements a smaller purchase of 863 M30S+ and M30S miners made
earlier this week that is expected to be delivered and fully
deployed in July, 2021.
The anticipated production capacity increase with both purchases
upon full deployment is expected to be 1.081 E/H, which alongside
previously announced investments, should bring Hut 8's total
installed capacity to approximately 2.5 E/H. The new fleet of
miners is expected to make up the first operational fleet in the
Company's planned 100 MW facility being developed in partnership
with Validus Power.
"We are excited to have identified this unique opportunity to
purchase MicroBT equipment that will enable us to almost double our
hashrate before the end of the year and substantially increase the
number of Bitcoins earned on a daily basis" remarked Jaime Leverton, Chief Executive Officer of Hut 8
Mining.
The 2.5 E/H installed production capacity noted above adds to
the 1,600 Gigahash anticipated from the NVIDIA cryptocurrency
mining processors. Given current bitcoin network dynamics, these
hashrate installations are expected to increase Hut 8's current
average production from 6.5 – 7.5 Bitcoin per day, to 14 – 16
Bitcoin per day based on current economic conditions.
Bitcoin Network Difficulty Update
As recently reported, with the exodus of bitcoin network
hashrate from China, latest
estimates suggest a sharp reduction in network difficulty on
July 2, 2021, in the range of 24% to
26%. While early in the transition, it is anticipated that the
reduction in network difficulty will increase Hut 8's current
average self-mined production by approximately 2 Bitcoin, from 6.5
– 7.5 Bitcoin per day, to 8.5 – 9.5 Bitcoin per day, without any
direct corresponding costs. After giving effect to (i) the
announced hash rate expansion above (2.5 E/H plus 1600 Gigahash,
expected to be in place by the end of 2021) and (ii) the
anticipated reduction in network difficulty, all else being equal,
Hut 8 estimates that its average daily self-mined Bitcoin will
increase to 20 – 22 Bitcoin per day.
About Hut 8:
Hut 8 is one of North America's
largest innovation-focused digital asset miners, supporting open
and decentralized systems since 2018. Located in energy rich
Alberta, Canada, Hut 8 has one of
the highest installed capacity rates in the industry and holds more
self-mined Bitcoin than any crypto miner or publicly traded company
globally. Hut 8 is executing on its commitment to mining and
holding Bitcoin and has a diversified business and revenue strategy
to grow and protect shareholder value regardless of Bitcoin's
market direction. The Company's multi-pronged business strategy
includes profitable digital asset mining, white-label high
performance compute hosting, as well as yield & income programs
leveraging its Bitcoin held in reserve. Having demonstrated rapid
growth and a stellar balance sheet, Hut 8 was the first publicly
traded miner on the TSX and the first Canadian miner to be listed
on The Nasdaq Global Select Market. Hut 8's team of business
building technologists are believers in decentralized systems,
stewards of powerful industry-leading solutions, and drivers of
innovation in digital asset mining and high-performance computing,
with a focus on being ESG aligned. Through innovation, imagination,
and passion, Hut 8 is helping to define the digital asset
revolution to create value and positive impacts for its
shareholders and generations to come.
Cautionary Note Regarding Forward–Looking
Information
This press release includes "forward-looking information" and
"forward-looking statements" within the meaning of Canadian
securities laws and United States
securities laws, respectively (collectively, "forward-looking
information"). All information, other than statements of historical
facts, included in this press release that address activities,
events or developments that the Company expects or anticipates will
or may occur in the future, including such things as future
business strategy, competitive strengths, goals, expansion and
growth of the Company's businesses, operations, plans and other
such matters is forward-looking information. Forward-looking
information is often identified by the words "may", "would",
"could", "should", "will", "intend", "plan", "anticipate",
"believe", "estimate", "expect" or similar expressions and
includes, among others, statements regarding the
anticipated expansion of the current installed hashrate, the
Company's trajectory to produce additional Bitcoin, planned
investments for the balance of 2021, the expected timing of the
installation and deployment of the SuperAcme miners, the NVIDIA
CMPs and the expected incremental production of Bitcoin resulting
therefrom, the build-out of a 100 MW facility and the anticipated
readiness of the initial 35 MW portion of such facility.
Forward-looking information is necessarily based on a number
of opinions, assumptions and estimates that, while considered
reasonable by Hut 8 as of the date of this press release, are
subject to known and unknown risks, uncertainties, assumptions and
other factors that may cause the actual results, level of activity,
performance or achievements to be materially different from those
expressed or implied by such forward-looking information, including
but not limited to the factors described in greater detail in the
"Risk Factors" section of the Company's Annual Information
Form dated March 25, 2021, which is
available on www.sedar.com. These factors are not intended to
represent a complete list of the factors that could affect Hut 8;
however, these factors should be considered carefully. There can be
no assurance that such estimates and assumptions will prove to be
correct. The forward-looking statements contained in this press
release are made as of the date of this press release, and Hut 8
expressly disclaims any obligation to update or alter statements
containing any forward-looking information, or the factors or
assumptions underlying them, whether as a result of new
information, future events or otherwise, except as required by
law.
Neither the Toronto Stock Exchange nor its Regulation
Services Provider (as that term is defined in the policies of the
Toronto Stock Exchange) accepts responsibility for the adequacy or
accuracy of this release.
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SOURCE Hut 8 Mining Corp