Hut 8 Mining Group, backed by Bitfury, mined 828 in Q1 of 2018. The Bitcoins are worth approximately $6.3 million at the time of writing even with the current bear trend that saw Bitcoin lose $1000 from its trading price over the last few days. The loss has resulted in a $3.1 million loss of profits for Hut Mining 8 Group overall.
It costs the company roughly $2029 USD to mine each Bitcoin, leaving the rest to profit. Hut 8 Mining Group reportedly generated $8.5 million in revenue overall and is leaning towards opening another mining facility in Canada. The company began mining in December 2017 at the all-time high value of Bitcoin. Despite the subsequent loss of market cap, CEO Andrew Kiguel has said that he’s pleased with how things have been going so far. The company raised $54 million USD recently to continue investing in the mining hardware they need to expand their operation.
The company has mined a total of 1,300 Bitcoins since December and are now seeking to construct a data center that will increase the mining capacity of the company by more than threefold. The facility is due to open in September 2018 in the City of Medicine Hat.
“The City of Medicine Hat site will consist of an additional 40 BlockBoxes. Once operational, Hut 8 will own 57 BlockBoxes, representing a 335 percent increase from current mining capacity, securing our position as one of the largest publicly traded Bitcoin miners in the world, with a total of 66.7 MW of power capacity and 448 PH/s.
With this increase in BlockBoxes from 17 to 57, we expect that our daily mining production will increase significantly. We believe our City of Medicine Hat Facility will represent operational excellence and set a new global benchmark for industrial scale cryptocurrency mining operations.”
Hut 8 Mining Corp announced the plans to create “North America’s largest bitcoin mining datacenters” late last year, and major mining and blockchain specialist firm Bitfury ended up backing the project and selling them the data centers known as BlockBoxes exclusively.
Bitfury featured on the Forbes Fintech 50 list recently and have data center operations in the Republic of Georgia, Iceland, Norway and Canada, all locations where low-cost electricity plays a major role in enabling profitable Bitcoin mining amid rising Bitcoin energy costs. Bbitfury was founded in 2011 and from there worked on developing hardware and software solutions to be used in the blockchain and Bitcoin mining industries.