The company estimates the approach of another halving in the bitcoin blockchain as a near-term event.
Bitcoin miner Hut 8 Mining continues to hold the No. 1 cryptocurrency in its corporate treasury and explains it as follows:
“It doesn’t make sense to sell bitcoins at low prices just to fund the expansion of its mining activity; we feel that the halving is a very near-term event.
As a reminder, the next bitcoin blockchain halving is expected tentatively on April 25, 2024 on block #840000, which will mean reducing the reward per block from the current 6.25 BTC to 3.125 BTC.
Thus, the company is looking for other ways to fund the expansion of its mining operations, rather than through the sale of mined bitcoins. In total, Hut 8 Mining had 7,406,000 BTC in its own reserves worth about $189 million by the end of Q2, and the organization has not sold a single bitcoin of that amount since the beginning of 2021.
The result of the second quarter was positive for Hut 8 Mining: the company’s revenue increased by 31% compared to the same period last year, up to $43.8 million; the number of bitcoins mined increased from 553 BTC to 946 BTC. The company noted that this result was achieved by increasing the fleet of mining equipment, as well as by upgrading the existing miners. Over the past 12 months Hut 8 Mining has invested nearly $178 million in the purchase of new mining machines.
It’s worth noting that the company plans for further revenue growth in 2023. The corporate hash rate reached 2.78 Eh/s by the end of Q2, and is expected to reach 3.55 Eh/s by early 2023.
The latest data, for August, shows that Hut 8 Mining increased its corporate bitcoin reserves to 8,111,000 BTC and the corporate hash rate rose to 2.98 Eh/s.
Hut 8 Mining’s investment in expanding its mining capacity will be increasingly supported by buyers of the company’s stock as well. Since the beginning of the week, this miner’s securities have been momentarily in the plus side on the Nasdaq, despite the overall stock market decline in New York.