In a recent report released on March 6, cryptocurrency mining company Hut 8 has announced the closure of its Bitcoin mining platform located in Drumheller, Alberta, Canada. The decision is attributed to a combination of power outages and the escalating costs associated with the mining operations.
Currently responsible for approximately 1.4% of Bitcoin (BTC) mining output, Drumheller utilizes around 11% of Hut 8’s total hash rate. While acknowledging the suspension of activities at the center, the company hints at the possibility of resuming operations in the future. Hut 8 has opted to retain the lease on the property, maintaining the potential to reopen the facility should market conditions become more favorable.
Last week, Hut 8 made headlines with the announcement of the commencement of construction for a new Bitcoin mining center in Culberson, Texas. Expected to boast a formidable hashrate of 3.6 EH/s, the facility is anticipated to cost approximately 40% less to construct than its outright purchase price. This move comes as part of Hut 8’s strategic expansion plans despite the closure of its Drumheller operations.
February witnessed a decrease in Hut 8’s Bitcoin production compared to January, with 292 BTC mined last month as opposed to 339 BTC in the preceding month. The company concluded February with a total holding of 9,110 BTC. Similar production dynamics were observed among other prominent miners, including Marathon Digital, Riot Platforms, and Bitfarms, with production declines ranging from 16% to 23% on a monthly basis.
The mining landscape appears to be navigating challenges, with companies adapting strategies and locations to optimize operational efficiency amid fluctuations in cryptocurrency market conditions.
