thecoinrepublic.com
- 1 Due to power supply issues, Hut 8 is only able to run 15% of the installed hash rates.
- 2 Problems with the power supply in Ontario forced Hut 8 to shift.
- 3 Hut 8 facing problems amid going through one the most significant mergers of the industry with the U.S. Bitcoin Corp
Due to electrical issues Hut 8’s mining site in Drumheller, Alberta is currently running only 15% of the installed hash rates due to electrical issues which are expected to be restored between 10-12 weeks, informed the firm on Tuesday.
But before we understand the issue further let us take a quick look at what Hut 8 is and what it does.
What is Hut 8, its Products, and its Stations?
Hut 8 is a listed and publicly traded Cryptocurrency mining company that mines Bitcoin (BTC) cryptocurrency tokens with the help of its wide range of crypto mining data centers. The company was founded by Marc van der Chijs in October 2017 and is currently established in Toronto, Ontario.
The business model of Hut 8 focuses on generating revenue from mining Bitcoin Tokens which is more than the electricity used for the data centers.
Apart from tackling mining using data centers, it is also responsible for the process of managing market volatility. It leverages property hardware and software and also has multiple mining centers. Their established computing infrastructure informs them about their partner’s cryptocurrency mining requirements.
With two of its data mining centers in Alberta and Canada, Hut 8 has the liberty of enjoying the power of diverse energy sources present in the two locations. The operations conducted by Hut 8 come in the presence of freezing cold temperatures and high winds. Apart from this Tanya Woods provides legal counsel to the company and is independently audited by Raymond Chabot Grant Thornton LLP.
Why is Hut 8 using only 15% of its Installed Hashrates?
Hut 8 announced its electricity issues on March 8 amidst a very important merger with the U.S. Bitcoin Corp. The merger is very significant for the industry as well.
Hut 8 had to move to Medicine Hat due to issues with the power provider in its third site in North Bay, Ontario during mid-November. It had to stop running 8000 miners in Ontario due to power issues. As of April end, the firm hasn’t found a way to operationalize them all.
The firm further added that machines have been causing equipment failure due to “High energy input levels” at Drumheller, while due to high energy prices, the firm is facing “additional headwinds”. The company has installed firmware to decrease the voltage of the power supply and has hired more staff to repair machines. Coindesk’s request for additional details on Drumheller was not responded to.
Hut 8’s computational capability may be as high as 0.9 exahashes per second (EH/s) at the Drumheller location. At the end of April, its two Alberta facilities’ combined installed hashrate was 2.6 EH/s. According to the company, the Medicine Hat plant in the Canadian province “hit an all-time operational high” of 1.72 EH/s in March.