Crypto News– Hut 8, a prominent Bitcoin mining conglomerate in North America, has announced the closure of its Drumheller facility located in Alberta, Canada.
Canadian Bitcoin Miner Halts Operations Due to Energy Crisis
This decision comes as part of a larger restructuring and optimization initiative led by the newly appointed CEO, Asher Genoot, aimed at strengthening the company’s financial performance and operational efficiency. Shutting down the Drumheller site represents a significant change in Hut 8’s operational landscape. Effective immediately, all Bitcoin mining activities at the Drumheller facility will cease. Hut 8 plans to relocate its most efficient miners to the Medicine Hat site, also situated in Alberta.
The decision to close Drumheller follows a thorough analysis revealing diminishing profitability attributed to rising energy costs and voltage issues. This move is expected to streamline Hut 8‘s operations.
“After conducting a comprehensive analysis, we’ve concluded that various factors, including increased energy expenses and underlying voltage issues, have significantly impacted the profitability of Drumheller,” stated Genoot. Despite the closure, the company maintains its lease on the Drumheller site and keeps the option open to resume operations if market conditions become favorable.
Hut 8 anticipates that this strategic shift will improve its cash flow and reduce the cost of Bitcoin mining, potentially enhancing mining efficiency by approximately 11%.
Leave a comment