On Monday, Hut 8 Mining Corp, a Bitcoin mining company, published its Bitcoin (“BTC”) production and miner installation updates for May 2022.
Based on the latest report by Hut 8 Mining Corp, the cryptocurrency mining business is a good investment. It is evident that most miners look solidly profitable.
Hut 8 improved its Bitcoin holdings in the period that ended May 31. Last week on Thursday, the mining firm announced that it started operations in its third mining facility at its North Bay site in Ontario, Canada. In late May, the company began testing its North Bay facility and started operating on 15 MW of power on June 2, adding approximately 400 PH/s to its operating capacity.
According to the report, Hut 8 mined 309 Bitcoins in May, hitting an average production rate of 10 Bitcoin per day. The firm decided to hold on to all of its self-mined Bitcoins in line with its long-standing HODL strategy.
As of May 31, Hut 8 said that it has a total of 7,078 BTC held on its balance sheet and installed an operating capacity of 2.64 exahash per second. Its Ethereum mining constituted about 14% of its total production, the company mentioned.
According to the company’s statement, since power costs continued to fluctuate throughout the month, the firm had to limit consumption at its facility at Drumheller (a town in Canada) as the spot price for power spiked.
Hut 8 said it is continuing to add miners and increase its power supply throughout June and expects that the North Bay mine will have a significant impact on its production results going forward.
Jaime Leverton, CEO of Hut 8, talked about the development and said: “We are thrilled that our most powerful and efficient machines are now mining Bitcoin at our North Bay site. Over the next several weeks, our team will continue installing and bringing miners online in real-time, complementing production at our facilities in Medicine Hat and Drumheller.”
Investors Seeing Compelling Opportunities in Miners
The latest development by Hut 8 is a testimony that crypto mining companies are providing a compelling investment alternative compared with other forms of direct and indirect exposure to cryptocurrencies.
Mining is still highly profitable and gross margins remain super healthy despite the sharp decline in crypto prices and an increasing network hashrate.
Major Bitcoin mining firms such as Marathon Digital, Hut 8, Bitfarms, Hut 8, Argo Blockchain, and Bit Digital have continued to build cost leadership and production scale, which provide better investment opportunities than volatile cryptocurrencies.
They have become a popular way in which many investors seek to invest indirectly in the underlying asset.
Image source: Shutterstock