Major crypto mining firm Hut 8 has decided to shut down its Bitcoin mining operation in Drumheller, Alberta, Canada. The closure comes as a result of rising energy costs and underlying voltage issues that have significantly impacted profitability at the site.
CEO Asher Genoot stated Hut 8 will retain the lease on the Drumheller property, leaving open the possibility of reopening mining activities there if market conditions improve. For now, the facility accounting for around 11% of Hut 8’s total hash rate will go offline.
The shutdown coincides with Hut 8’s recent announcement to construct a new, more cost-efficient Bitcoin mining site in Culberson County, Texas. Representing a 40% discount over acquisition costs, the $63 million, 3.6 EH/s mining farm indicates Hut 8’s strategic shift towards optimizing economics.
Like other major miners, Hut 8 saw Bitcoin production decline between 16-23% from January to February as operational expenditures outpaced mining rewards. As cryptocurrencies scale, mining operations must continually relocate to areas providing the optimal mix of cheap power, robust infrastructure and regulatory certainty to remain profitable.
