Remediation progressing at Drumheller, Alberta site
At 9,265 BTC, Hut 8 continues to hold the
largest amount of self-mined Bitcoin in reserve of any
publicly traded company
132 Bitcoin mined in
April
TORONTO, May 9, 2023
/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 and high performance computing infrastructure provider,
mined 132 Bitcoin in the period ending April 30, 2023.
Production highlights for
April 2023:
- 132 Bitcoin were generated, resulting in an
average production rate of approximately 4.4 Bitcoin
per day.
- Total balance of unencumbered Bitcoin held in
reserve as of April 30 is 9,265.
- Installed ASIC hashrate capacity at our Alberta facilities was 2.6 EH/s at the end of
the month.
- Hut 8 produced 50.77 BTC/EH in April.
- No Bitcoin were sold during the month.
Operational highlights:
- Remediation at our Drumheller,
Alberta site progressed throughout the month:
-
- High energy input levels at the site have been causing
equipment failures that have materially reduced operations, which
are currently at approximately 15% of our installed hashrate at the
site.
- In response, we began implementing firmware across all miner
models designed to lower the power supply's maximum output voltage,
ensuring our equipment operates within safe limits.
- Our team is actively engaged in repairing damaged equipment and
restoring the hashrate to its optimal level.
- We are closely monitoring the situation and will continue to
make the necessary adjustments as needed to restore, safeguard, and
optimize our equipment.
- We are actively increasing repair staff, adding an additional
repair centre shift, and have procured new hardware to expedite
repairs and accelerate the speed at which we bring miners back
online.
- We expect to have the site restored in 10-12 weeks.
- Spikes in energy rates have created additional headwinds at
Drumheller.
- Our team is actively pursuing options to operationalize the
bulk of the approximately 7,000 miners that were removed from our
North Bay site.
"We are very aware of the impact that the issues at Drumheller are having on the broader business:
they are complex and challenging, but we have made meaningful
progress and have a roadmap to remediation," said Jaime Leverton, CEO of Hut 8. "We are laser
focused on closing the proposed transaction with US
Bitcoin Corp., which will both expand our overall
production to 7.02 EH/s and provide access to additional energy
markets."
About Hut 8
Hut 8 is one of North America's largest
innovation-focused digital asset miners, led by a team of
business-building technologists, bullish on bitcoin,
blockchain, Web 3.0, and bridging the nascent and traditional high
performance computing worlds. With two operational digital asset
mining sites located in Southern Alberta, Hut 8 has one of the
highest capacity rates in the industry and one of the highest
inventories of unencumbered, self-mined Bitcoin of any
digital asset miner or publicly-traded company globally. With over
36,000 square feet of geo-diverse data centre space and cloud
capacity connected to electrical grids powered by significant
renewables and emission-free resources, Hut 8 is revolutionizing
conventional assets to create the first hybrid data centre model
that serves both the traditional high performance compute (Web 2.0)
and nascent digital asset computing sectors, blockchain gaming, and
Web 3.0. Hut 8 was the first Canadian digital asset miner to list
on the Nasdaq Global Select Market. 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", "allow", "believe", "estimate",
"expect", "predict", "can", "might", "potential", "predict", "is
designed to", "likely" or similar expressions. In addition, any
statements in this press release that refer to expectations,
projections or other characterizations of future events or
circumstances contain forward-looking information and include,
among others, statements regarding: Bitcoin network
dynamics; the Company's ability to advance its longstanding HODL
strategy; the Company's ability to produce additional
Bitcoin and maintain existing rates of productivity at
all sites; the Company's ability to deploy additional miners; the
Company's ability to continue mining digital assets efficiently;
the sale of the Company's Bitcoin production and the
proposed use of proceeds from such sale; the Company's plans with
respect to the energization of the miners that were removed from
the North Bay facility; the
Company's expected recurring revenue and growth rate from its high
performance computing business; the remediation of the operational
issues at the Company's Drumheller
facility, and the timing thereof; the Company's expectations with
respect to the closing of the transaction with US
Bitcoin Corp.; and the Company's ability to
successfully navigate the current market.
Statements containing forward-looking information are not
historical facts, but instead represent management's expectations,
estimates and projections regarding future events based on certain
material factors and assumptions at the time the statement was
made. While considered reasonable by Hut 8 as of the date of this
press release, such statements 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, security
and cybersecurity threats and hacks, malicious actors or botnet
obtaining control of processing power on the Bitcoin
network, further development and acceptance of the
Bitcoin network, changes to Bitcoin
mining difficulty, loss or destruction of private keys, increases
in fees for recording transactions in the Blockchain, erroneous
transactions, reliance on a limited number of key employees,
reliance on third party mining pool service providers, regulatory
changes, classification and tax changes, momentum pricing risk,
fraud and failure related to digital asset exchanges, difficulty in
obtaining banking services and financing, difficulty in obtaining
insurance, permits and licenses, internet and power disruptions,
geopolitical events, uncertainty in the development of
cryptographic and algorithmic protocols, uncertainty about the
acceptance or widespread use of digital assets, failure to
anticipate technology innovations, the COVID19 pandemic, climate
change, currency risk, lending risk and recovery of potential
losses, litigation risk, business integration risk, changes in
market demand, changes in network and infrastructure, system
interruption, changes in leasing arrangements, failure to
achieve intended benefits of power purchase agreements, potential
for interrupted delivery, or suspension of the delivery, of energy
to the Company's mining sites, and other risks related to the
digital asset and data centre business. For a complete list of the
factors that could affect the Company, please see the "Risk
Factors" section of the Company's Annual Information Form dated
March 17, 2022, and Hut 8's other
continuous disclosure documents which are available on the
Company's profile on the System for Electronic Document Analysis
and Retrieval at www.sedar.com and on the EDGAR section of
the U.S. Securities and Exchange Commission's website at
www.sec.gov.
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. Should one or
more of these risks or uncertainties materialize, or should
assumptions underlying the forward-looking statements prove
incorrect, actual results may vary materially from those described
in this press release as intended, planned, anticipated, believed,
sought, proposed, estimated, forecasted, expected, projected or
targeted and such forward-looking statements included in this press
release should not be unduly relied upon. The impact of any one
assumption, risk, uncertainty, or other factor on a particular
forward-looking statement cannot be determined with certainty
because they are interdependent and Hut 8's future decisions and
actions will depend on management's assessment of all information
at the relevant time. 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.
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SOURCE Hut 8 Mining Corp