{"id":48618,"date":"2020-07-01T09:03:01","date_gmt":"2020-07-01T09:03:01","guid":{"rendered":"https:\/\/www.cryptocabaret.com\/?p=48618"},"modified":"2020-07-01T09:03:01","modified_gmt":"2020-07-01T09:03:01","slug":"bitcoin-miner-hut-8-to-add-275-ph-s-of-mining-capacity-with-8-3m-capital-raise","status":"publish","type":"post","link":"https:\/\/www.cryptocabaret.com\/?p=48618","title":{"rendered":"Bitcoin Miner Hut 8 to Add 275 PH\/s of Mining Capacity With $8.3M Capital Raise"},"content":{"rendered":"

\"Bitcoin<\/p>\n

Hut 8 Mining Corp. has raised $8.3 million from the sale of 6% of its shares to investors. The Canadian bitcoin miner originally intended to raise $7.5 million from the sale, but it was oversubscribed.<\/strong><\/p>\n

Totonto Stock Exchange-listed Hut 8 issued about 5.8 million “units” at a price of $1.45 each. Each unit is comprised of one common share. From this, investors have the option to buy another share for $1.80 between now and December 2021.<\/p>\n

The Alberta-based miner said funds from the offering will be used to upgrade its range of mining hardware including Application-Specific Integrated Circuit (ASIC) miners. The upgrade will add up to 275 petahash per second (PH\/s) to Hut 8’s existing mining capacity of 952 PH\/s.<\/p>\n

Once installed, the new machines, which include “more efficient processing chips from Microbt” will also add 12.6 megawatts (MW) of power to the company’s current 107 MW maximum operating capacity.<\/p>\n

“Hut 8 has been testing the Microbt equipment for the past three months in preparation of this upgrade… [we] expect to receive equipment between July and November 2020,” said the firm in a press statement<\/a>.<\/p>\n

In recent months, Hut 8 has seen the amount of bitcoin mined at its data centers in Canada decline. During the first quarter of 2020, the company extracted 1,116 BTC<\/a>, down 54% from 2,405 BTC<\/a> mined in the comparable year ago period.<\/p>\n

The company blamed the decline on “the increasing network difficulty” which “impacted…production negatively with much fewer bitcoin mined.” For the March quarter, Hut 8 reported that its net loss widened to $8.4 million from $6.1 million a year earlier.<\/p>\n

The Canadian miner is now hoping that its latest acquisition of more efficient mining equipment will help turnaround company fortunes, already facing a squeeze from the recent bitcoin supply cut event, which reduced the bonus paid to miners by 50% to 6.25 BTC<\/a> per block.<\/p>\n

Shares of Hut 8 are up 2% at CAD$1 (~$0.73) in Toronto trading on Tuesday. Over the last 52 weeks, the stock has reached a low of $0.37 and a high of $1.99.<\/p>\n

What do you think about Hut 8’s bitcoin mining ambitions? Let us know in the comments section below.<\/strong><\/em><\/p>\n

The post Bitcoin Miner Hut 8 to Add 275 PH\/s of Mining Capacity With $8.3M Capital Raise<\/a> appeared first on Bitcoin News<\/a>.<\/p>\n

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