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Hut 8’s BTC Production Dips 17% in February, Plans Sale to Fund Operations

Finance Magnates

Cryptocoins News / Finance Magnates 94 Views

<p>Hut 8 Mining, one of North America’s largest digital asset miners, released its February production figures on Tuesday, reporting an 8% decline in BTC production. However, the company said it plans to sell the 156 BTC mined during the month to fund its operating costs.</p><p>Jaime Leverton, Hut 8’s Chief Executive Officer, noted in a statement that the company opted to sell a portion of its stack instead of “seeking other financing options with less attractive terms.” Last month, the company also sold the 188 BTC it mined earlier in January 2023. </p><p>Hut 8’s Produces Less BTC in Feb Despite Merger with US Bitcoin</p><p>In early February, Hut 8 announced its <a href="https://www.financemagnates.com/cryptocurrency/hut-8-merges-with-us-bitcoin-to-fight-crypto-winter/" target="_blank" rel="follow">merger with US Bitcoin</a>, a company that operates four BTC mining centres in the United States. However, with the dip in production in February, it appears both companies are yet to be fully consolidated into one.</p><p>Meanwhile, Hut 8’s production dip came in a month BTC network mining difficulty hit an all-time high, <a href="https://www.financemagnates.com/cryptocurrency/hive-produces-4-less-btc-in-february-as-mining-difficulty-surpasses-40-trillion/" target="_blank" rel="follow">surpassing 40 trillion</a> in late February. In addition, BTC miners <a href="https://www.financemagnates.com/cryptocurrency/why-bitcoin-miners-made-6-billion-less-in-2022/" target="_blank" rel="follow">made $6 billion less in 2022</a> as they cut their revenues due to the <a href="https://www.financemagnates.com/cryptocurrency/whats-next-for-crypto-after-the-chaos-of-2022/" target="_blank" rel="follow">prolonged crypto winter</a>. However, Hut 8 noted that electrical issues at its mining facility in Drumheller, Alberta, also contributed to the reduced production last month. </p><p>Furthermore, Hut 8 relocated its miners and electrical equipment from North Bay, Ontario, to Medicine Hat in Alberta, Canada, in February. Moreover, the company said it temporarily transferred its electrical equipment to a third-party facility during the month.</p><p>Despite these developments, Hut 8 said its total BTC balance held in reserve as of February 28th stood at 7,243. This means that the digital asset miner “continues to hold the largest amount of self-mined <a href="https://www.financemagnates.com/terms/b/bitcoin/" class="terms__main-term" id="261088a9-0f41-4202-a73c-31f75ba6bd93" target="_blank">Bitcoin</a> in reserve of any publicly-traded company.”</p><p>Meanwhile, HIVE Blockchain Technologies, another Canadian crypto miner, recently <a href="https://www.financemagnates.com/cryptocurrency/hive-produces-4-less-btc-in-february-as-mining-difficulty-surpasses-40-trillion/" target="_blank" rel="follow">reported a 4% drop</a> in its BTC production. The firm produced 250 BTC last month compared to 260 BTC mined in January. However, the February production is 17% higher than the 214 BTC produced in December 2022.</p> This article was written by Solomon Oladipupo at www.financemagnates.com.
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