Bitcoin Mining Company Hut 8 Becomes 30% More Efficient

On April 16, Bitcoin mining company Hut 8 Corp, which is publicly traded, declared the kick-off of its self-mining activities at the newly established Salt Creek facility. This initiative began just 78 days after construction started on the site.

Located in Texas, the Salt Creek facility features an advantageous energy profile that is anticipated to lower mining expenses by 30% relative to the company’s existing hosting facilities.

In Just 4 Days, Fewer Bitcoin Mining Companies Will Remain Profitable

The energization of the new site accounts for only one-third of the total facility, which now operates with 63 megawatts (MW) of power.

Hut 8 CEO Asher Genoot, in a press release, emphasized the strategic advantage of Salt Creek, highlighting its significance in managing the company’s miner fleet and operational costs as the Bitcoin halving approaches. He further noted that the energy cost projections at Salt Creek are anticipated to align with the previously estimated 30% reduction in mining costs compared to their Kearney and Granbury locations.

The Bitcoin halving, an event that occurs every four years, reduces the rate at which new coins are generated by the Bitcoin network by half. This reduction is scheduled to happen within the next four days, slashing the daily production of new BTC from 900 to 450.

Although the halving is generally considered to have a positive impact on Bitcoin’s value over time, it initially poses significant challenges for the mining sector by drastically reducing their revenue. In this environment, only the most efficient mining operations, which can achieve the highest hash rates while using minimal energy, will remain profitable.

Hut 8’s Efficiency Efforts

Earlier this month, Hut 8 announced the strategic relocation of its most efficient mining machines from its Kearney and Granbury sites to boost the operation of its Salt Creek fleet and optimize its hash rate in preparation for the upcoming halving. Last month, the company also shut down one of its mining facilities in Alberta, Canada, due to disruptions in power supply and high energy costs.

Furthermore, Hut 8 has implemented Reactor, an automated energy management software designed to keep miners operational only during profitable conditions.

Genroot, speaking on the company’s financial strategy, highlighted that Hut 8 is on course to achieve a highly cost-effective buildout. The projected all-in cost is expected to be $275,000 per megawatt or less, which translates to a 40% cost reduction compared to recent acquisitions in the same region.

Less than three months after breaking ground, we’ve officially energized one third of our 63 MW Salt Creek site in Culberson County, Texas.💪

Our team made rapid energization possible by removing more than 25,000 miners on 20 loaded transports from our hosted facilities in just… pic.twitter.com/BzpikS7ABS

— Hut 8 (@Hut8Corp) April 16, 2024

After these developments were made public, Hut 8’s stock (HUT) saw a rise of 0.9% since Monday, performing well despite a slight decline in BTC, other miners, and Bitcoin-associated stocks on Tuesday.

Genoot also expressed immense pride in his team for their exemplary performance at Salt Creek, highlighting their remarkable achievement of removing over 25,000 miners from Kearney and Granbury within just eight days. He emphasized the company’s progress in maintaining a highly cost-effective buildout, with an anticipated all-in cost of $275,000 per megawatt or less, which represents a 40% savings compared to recent acquisitions in the area.

Genoot affirmed that, as demonstrated at Salt Creek, the company will persist in taking decisive actions to enhance and expand its self-mining operations.

A Little Bit About Bitcoin Mining Company Hut 8

Hut 8 Corp., based in Miami, Florida, operates as an energy infrastructure provider and Bitcoin mining company, offering self-mining, hosting, managed services, and conventional data center operations throughout North America.

The company’s extensive portfolio includes eighteen locations: nine dedicated to Bitcoin mining, hosting, and managed services across Alberta, New York, Nebraska, and Texas; five high-performance computing data centers in British Columbia and Ontario; and four power generation facilities located in Ontario.