Hut 8 Closes Bitcoin Mining Site Due to Power Crisis

In a report on March 6th, crypto miner Hut 8 announced it will be shutting down its Drumheller, Alberta mining facility. The move comes as the site grapples with soaring energy costs and voltage issues that have significantly impacted profitability.

“We have determined that the profitability of Drumheller has been impacted significantly by various factors, including elevated energy costs and underlying voltage issues,” stated Hut 8 CEO, Asher Genoot.

While Drumheller accounted for just 1.4% of Bitcoin’s total hashrate, the closure highlights the challenges crypto miners face amid rising electricity prices. However, Hut 8 plans to retain the lease, leaving open the possibility of reopening the site if conditions improve.

The announcement follows Hut 8’s launch of a new 3.6 EH/s mining facility in Texas last week, as the company continues its westward expansion. Industry peers like Marathon Digital and Riot Platforms have also reported hashrate declines amid the volatile climate.

It’s a great day to build, esp. when it’s at a 40% savings over buying turnkey sites! Construction is underway at our newest site in Culberson County, TX: expected to come online in Q2, the 63 MW site is expected to have up to 3.6 EH/s of self-mining capacity. More info in our… pic.twitter.com/LEG347mrEu
— Hut 8 (@Hut8Corp) February 27, 2024

Also Read: NFT Worlds Node Sale Sparks Minecraft Crypto Project Rebrand

Disclaimer: The information researched and reported by The Crypto Times is for informational purposes only and is not a substitute for professional financial advice. Investing in crypto assets involves significant risk due to market volatility. Always Do Your Own Research (DYOR) and consult with a qualified Financial Advisor before making any investment decisions.

Follow The Crypto Times on Google News to Stay Updated!