Hut 8’s Stellar Q3 Performance
In a twist of fate that even the most optimistic Bitcoin enthusiasts might not have predicted, Canadian Bitcoin mining giant Hut 8 reported a whopping $13.5 million in revenue for the third quarter of 2018. This juicy nugget also brought their nine-month total to $27.7 million, which is enough to make any crypto devotee breathe a sigh of relief. Thanks to their daring deployment of 16 new Bitfury BlockBoxes at their Medicine Hat mining facility in September, Hut 8 has solidified its claim to the title of ‘largest public crypto mining company’—at least by operating capacity and market capitalization.
The Breakdown of Success
Hold onto your wallets—Hut 8’s revenue soared by an impressive 126% compared to the previous quarter’s milder $5.9 million. How did they pull this off? Each BlockBox, housing a whopping 176 mining servers and capable of achieving a hashrate of 13.7 Pethashes per second (Ph/s), was cranked into action. Many are left wondering if there’s a secret sauce at play, but it seems like sheer operational grit is at the core of this success.
Mining Costs and Profits
While the allure of Bitcoin is undeniable, it’s all about the numbers when it comes to mining. For Q3, Hut 8’s cost for mining a single Bitcoin stood at $3,394. At the time of reporting, the market price flirted around $6,400. So, what does that mean for Hut 8? A mining profit of $6.6 million and a* 51% mining profit margin—making them one of the most cost-effective BTC mining companies globally. It’s a sweet gig, especially when most would argue that high costs lead to lower margins.
Challenges Along the Way
Spoils and sweets aside, it wasn’t all sunshine and rainbows for Hut 8. The Bitcoin price surged during Q3, sparking fierce competition among miners. Adding a proverbial cherry on top? Record-high temperatures in Alberta hiked their electricity costs at the Drumheller facility. You see, cold weather might just be a mining operator’s best friend, as it keeps power bills at bay—perfect weather for cooling those hungry mining machines.
The Future Looks Frosty
Looking ahead, Hut 8 is optimistic about the rise of Application-Specific Integrated Circuit (ASIC) chip efficiency during the colder months. If those chips could talk, they’d probably be high-fiving each other for the performance boost that winter brings. With the Medicine Hat facility just having launched in July and at least 1,000 BTC mined since December of last year, Hut 8 is positioning itself well for future success. Meanwhile, amidst all this excitement, BTCC Pool is preparing to close its doors for now in what it calls ‘business adjustments’—hopefully, they’ll be back with a bang!
