Crypto Miner Hut 8 Shuts Down a Mining Facility

Mining company Hut 8 has made the decision to close its Drumheller mining site in Alberta, Canada. This is due to issues with power disruptions and the soaring costs of energy.

The closure, effective immediately, will affect around 1.4% of the company’s Bitcoin production and 11% of their hash rate.

The CEO, Asher Genoot, explained that after thorough analysis, they concluded that the profitability of the Drumheller site has been greatly impacted by various factors, including high energy costs and voltage problems.

The company will relocate its Bitcoin miners to their Medicine Hat facility in Alberta, Canada, and will keep the option to resume operations at the Drumheller site if market conditions improve.

The mining sector has been facing challenges such as increased energy costs and decreasing mining returns as a result of factors like record mining difficulty and the upcoming Bitcoin halving.