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

Hat 8 Mining Corp. raised $ 8.3 million from the sale of 6% of its stock to investors. The Canadian bitcoin miner originally planned to raise $ 7.5 million from the sale, but was oversubscribed.

Hut 8, listed on the Totonto Stock Exchange, issued approximately 5.8 million “units” at a price of $ 1.45 each. Each unit consists of one common share. From here, investors have the option to buy another share for $ 1.80 by December 2021.

The Alberta-based miner said the funds from the offer will be used to improve his offer of mining hardware, including ASIC (Application-Specific Integrated Circuit) miners. The upgrade increases Hut 8's existing mining capacity from 952 PH / s to 275 petahash per second (PH / s).

Once installed, the new machines, which include “Microbt's more efficient processing chips,” will increase the company's current maximum operating capacity from 107 MW by 12.6 megawatts (MW).

"Hut 8 has been testing Microbt equipment in the past three months to prepare for this upgrade. (We) expect the equipment to be received between July and November 2020," the company said in one Press release.

Over the past few months, Hut 8 has seen a drop in Bitcoin levels in its data centers in Canada. The company extracted 1,116 in the first quarter of 2020 BTCby 54% from 2,405 BTC mined in the comparable period last year.

The company attributed the decline to "the increasing network difficulty" that "negatively impacted production as much less Bitcoin was mined". For the March quarter, Hut 8 announced that its net loss increased from $ 6.1 million a year earlier to $ 8.4 million.

The Canadian miner now hopes that his recent purchase of more efficient mining equipment will help improve the company's assets, as the recent event to cut bitcoin supply has already put pressure on the miners to add 50% of the bonus paid to miners 6.25 reduced BTC per block.

Hut 8 shares increased 2% to 1 CAD (~ $ 0.73) in Toronto on Tuesday. The stock has hit a low of $ 0.37 and a high of $ 1.99 in the past 52 weeks.

What do you think of Hut 8's bitcoin mining ambitions? Let us know in the comments below.

Image credits: Shutterstock, Pixabay, Wiki Commons

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