Bitcoin Miner Hut 8 Closes Better-Than-Expected Equity Round at $8.3M

Miner Hut Eight mentioned final week it had raised a complete of $8.Three million from promoting a 6% fairness stake to traders, roughly $800,000 greater than the unique $7.5 million funding goal.

The Toronto-listed mining firm says the funding will maintain it aggressive as smaller entities with older gear really feel the pinch from final month’s halving.

“We’re proud to close the first prospectus offering by a cryptocurrency mining company in Canada and further improve Hut 8’s lead as one of the largest public bitcoin miners,” mentioned Jimmy Vaiopoulos, Hut 8’s interim CEO, in a press release.

Overall, traders bought a complete of 5.7 million “units” in Hut 8, at $1.45 apiece. Each unit incorporates one frequent share in Alberta-based Hut 8, in addition to the choice to buy one other share within the subsequent 18 months at $1.85.

The funding will likely be invested in new gear. Ryleigh Ebron, an exterior spokesperson for Hut 8, mentioned the corporate be capable of enhance mining capability by greater than a fifth to 1,150 petahash (PH/s). Once put in, the corporate might comprise slightly below 1% of the overall hash fee for the bitcoin blockchain, presently round 115,200 PH/s in accordance with

“This financing is expected to strengthen Hut 8’s cash flows and balance sheet,” Ebron added.

Hut 8’s funds have been the topic of a lot dialogue. It noticed a $116.6 million loss simply in This fall 2019. As a report from CoinDesk Research highlighted earlier this 12 months, the corporate made a wafer-thin acquire of simply over $2 million in 2019.

The inventory value says all of it: In April 2019, Hut Eight traded at CAD $4.50 (~$3.28) however has since spiraled downwards, hitting a low of CAD $0.59 ($0.43) by mid-March this 12 months. At the time of writing, shares have been at CAD $0.98 (~$0.72).

Hut Eight has attributed this poor efficiency to a deleterious settlement that obliged them to solely purchase mining gear from producer Bitfury, its single greatest investor. That prevented it from accessing the quicker miners coming from Bitfury’s rivals, leaving it with quickly getting old gear.

Over time, that meant it made up much less of the overall hashrate and gained far fewer blocks, which hit income. In January, Hut Eight amended the settlement so it might purchase mining gear elsewhere.

Interestingly, Hut Eight mentioned it is going to use all the brand new funding to purchase mining gear from Bitfury’s rival, MicroBT. Most of the brand new rigs will arrive between July and November.

Hut Eight hopes the halving will make it tougher for a few of their opponents, those working with older gear, to remain within the sport, mentioned Ebron.

“The halving is arguably better for miners who can get access to the latest generation of bitcoin mining equipment as they are far more profitable and will benefit from the drop in network difficulty as older equipment continues to be turned offline,” Ebron mentioned.

Ebron additionally identified the miner is in a very advantageous place as a result of decrease electrical energy charges in Alberta imply Hut Eight can higher climate fluctuations within the unstable bitcoin value.

Hut Eight listed on the Toronto Securities Exchange in October 2019. The trade has already accredited the itemizing of newly offered shares, topic to the mining firm assembly itemizing situations, which embody having greater than CAD $7.5 million (~$5.5 million) in web tangible belongings, corresponding to new mining gear.


The chief in blockchain information, CoinDesk is a media outlet that strives for the best journalistic requirements and abides by a strict set of editorial insurance policies. CoinDesk is an impartial working subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.

Your Opinion Matters

Quality - 10


Total Score

Your feedback is important to us to improve our services. We constantly seek feedback to improve and evolve our service, whilst identifying opportunities to assist clients in realising their business objectives.

User Rating: 4 ( 4 votes)

Show More


Earn Free Bitcoin Online with

Related Articles

Leave a Reply

Back to top button