Canada’s largest bitcoin miner continues to grow. Hut 8 is now showing the thickest bitcoin stash.
Hut 8 takes the lead
The third quarter ended with a net loss of C$24 million for Hut 8. That said, its bitcoin reserves (justice) increased by 13.3%. It reached 8,388 BTC as of September 30, 2022.
In all, the firm released 982 BTC (+8.5%) in the third quarter. In other words, the net losses are mainly due to the decline of bitcoin.
Especially since the Hut 8 press release indicates that the fall in energy prices has allowed “to lower the average cost of production of a BTC by 29% quarter-on-quarter”.
However, this average cost of production is still rising from one year to the next. It went from $17,700 per bitcoin to $18,300. This increase is explained by the increase in the hashrate and the increase in energy prices.
Further proof of its envious position, Hut 8 fortified its power of mining 10% (3.1 pe/s). The miner has deployed 2,205 new MicroBT M30S machines across its three sites.
These investments also explain why Hut 8 is posting a net loss despite making a profit of $9.3 million on its bitcoin mining.
Jaime Leverton, CEO of Hut 8, congratulated to have passed Marathon, claiming to possess “largest bitcoin holdings among all publicly traded miners”.
“Our conservative approach to managing our balance sheet continues to be paramount to us at Hut 8”said chief financial officer Shane Downey.
In other words, Hut 8 did not finance its growth on credit, but through the issuance of shares. Since 2021, the company has raised $398 million, including $315 million in 2021 and $83 million in 2022.
This is a definite advantage when bear market. If the miners Core Scientific, Argo, Stronghold and Iris Energy are taken by the throat, this will not be the case for the Canadian who continues to strengthen his BTC reserves.
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