Hut 8 Mines Less but Hoards More Bitcoins in Crypto Vault

<p>The
number of Bitcoins publicly traded miner Hut 8 Mining Corp. produced increased
to 111 BTC in September. Although this result is significantly lower than last
year's, it reflects a general trend observed in the industry. Additionally, Hut
8 is progressing with its business combination with U.S. Data Mining Group,
marking a significant milestone in its growth strategy.</p><p>Hut 8 Mines More BTC in
September 2023</p><p>In
September, Hut 8 generated 111 Bitcoins, averaging a production rate of about
3.7 Bitcoins per day. Compared to the last month, it is a modest increase of 8
BTC compared to 103 tokens mined in August 2023. However, compared to the same
period a year earlier, the crypto production fell visibly, by 166 BTC, from 277
mined in September 2022.</p><p>Interestingly,
the company chose not to sell any of its mined <a href="https://www.financemagnates.com/terms/b/bitcoin/">Bitcoins</a> during the latest
reported period. As of 30 September, Hut 8's total Bitcoin reserve stood at
9,366, with 7,269 of these being unencumbered. In comparison, a year earlier,
the total BTC reserve came in at 8,388. The installed ASIC hash rate capacity
at the company's Alberta facilities was reported to be 2.6 EH/s at the end of
the month, and the company produced 42.7 BTC per EH.</p><p>The
issue of a significant decline in mining compared to the previous year is not
unique to Hut 8 but also affects other publicly traded companies. Similar data
comes from <a href="https://www.financemagnates.com/cryptocurrency/argo-blockchain-reports-34-increase-in-bitcoin-mining-for-september-2023/" target="_blank" rel="follow">the Argo Blockchain report</a> published last week and a separate <a href="https://www.financemagnates.com/cryptocurrency/bitfarms-ytd-bitcoin-mining-figures-lower-than-2022/" target="_blank" rel="follow">mining
report by Bitfarms</a>. This has led analysts to increasingly question whether
Bitcoin mining <a href="https://www.financemagnates.com/cryptocurrency/does-bitcoin-or-crypto-mining-still-pay-off/" target="_blank" rel="follow">is still profitable</a>.</p><p>Business Combination and
Future Prospects</p><p>Another
significant development for Hut 8 was the approval of its proposed business combination
with US Data Mining Group, <a href="https://www.financemagnates.com/cryptocurrency/hut-8-obtains-supreme-court-approval-for-usbtc-merger-in-canada/" target="_blank" rel="follow">also known as USBTC</a>. This approval came during a
special meeting held on 12 September and is considered a crucial step toward
completing the transaction. Following this, the Canadian Supreme Court of
British Columbia issued a final order approving the arrangement on 15 September.</p><p>"The
vote, along with the Supreme Court of British Columbia's approval of our plan
of arrangement, continue to advance us toward a new Hut 8," Jaime
Leverton, the CEO of Hut 8, expressed gratitude towards shareholders for their
support. "It will have highly diversified fiat revenue streams in high-performance
computing, hosting, and managed infrastructure operations, all of which are
intended to capture upside and solve for the challenges that single-threaded
miners will face going into the next <a href="https://www.financemagnates.com/terms/h/halving/">halving</a>."</p><p>As Finance
Magnates reported in August, Hut 8 found itself among five publicly traded
companies that felt the adverse effects of a sudden drop in BTC price. <a href="https://www.financemagnates.com/cryptocurrency/bitcoin-miners-face-a-28-billion-nightmare-and-lowest-revenues-in-a-month/" target="_blank" rel="follow">Their
total market cap fell 30% </a>within a month, from $9.5 billion to $6.7 billion.</p>

This article was written by Damian Chmiel at www.financemagnates.com.