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Bitcoin Miner Hut 8 to Add 275 PH/s of Mining Capacity With $8.3M Capital Raise

Hut 8 Mining Corp. has raised $8.three million from the sale of 6% of its shares to buyers. The Canadian bitcoin miner initially meant to increase $7.5 million from the sale, however it was oversubscribed.

Totonto Stock Exchange-listed Hut 8 issued about 5.8 million “units” at a worth of $1.45 every. Each unit is comprised of one frequent share. From this, buyers have the choice to purchase one other share for $1.80 between now and December 2021.

The Alberta-based miner mentioned funds from the providing will probably be used to improve its vary of mining {hardware} together with Application-Specific Integrated Circuit (ASIC) miners. The improve will add up to 275 petahash per second (PH/s) to Hut 8’s current mining capability of 952 PH/s.

Once put in, the brand new machines, which embrace “more efficient processing chips from Microbt” may even add 12.6 megawatts (MW) of energy to the corporate’s present 107 MW most working capability.

“Hut 8 has been testing the Microbt equipment for the past three months in preparation of this upgrade… [we] expect to receive equipment between July and November 2020,” mentioned the agency in a press assertion.

In latest months, Hut 8 has seen the quantity of bitcoin mined at its information facilities in Canada decline. During the primary quarter of 2020, the corporate extracted 1,116 BTC, down 54% from 2,405 BTC mined within the comparable 12 months in the past interval.

The firm blamed the decline on “the increasing network difficulty” which “impacted…production negatively with much fewer bitcoin mined.” For the March quarter, Hut 8 reported that its internet loss widened to $8.four million from $6.1 million a 12 months earlier.

The Canadian miner is now hoping that its newest acquisition of extra environment friendly mining gear will assist turnaround firm fortunes, already dealing with a squeeze from the latest bitcoin provide minimize occasion, which decreased the bonus paid to miners by 50% to 6.25 BTC per block.

Shares of Hut 8 are up 2% at CAD$1 (~$0.73) in Toronto buying and selling on Tuesday. Over the final 52 weeks, the inventory has reached a low of $0.37 and a excessive of $1.99.

What do you consider Hut 8’s bitcoin mining ambitions? Let us know within the feedback part under.

Image Credits: Shutterstock, Pixabay, Wiki Commons

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