Hut 8 has now become the world’s largest publicly traded mining operation by capacity. As reported in a previous article, Hut 8 has big future plans. They are an outfit designed to give investors direct exposure to the rises and falls of Bitcoin. They do so without the customer needing to invest in hardware, or even possess developer level knowledge of the technology being used.
Original plans for expansion showed a September launch date for additional capacity. Known as a ‘BlockBox’, these self-contained shipping units, provided through a partnership with BitFury, are custom built to provide > 8 PH/s of mining potential. Hut 8 has now announced that expansion is complete, and they have a total of 57 BlockBoxes up and running in Alberta between Medicine Hat, and Drumheller. The new BlackBoxes are also a newer design, utilizing a 14nm chip as opposed to a 16nm chip. This has resulted in greater performance than expected. With this addition of 24 new Blackboxes situated on the 11acre parcel in Medicine Hat, this expansion leads to some impressive figures.
BlackBox Hashing Power & Capacity
– ~8-9 PH/s with 1.2 MW capacity
Total Hashing Power & Capacity
– 450-500 PH/s with 66.7 MW capacity
Why is this important?
News of the completed expansion comes at a good time. In recent weeks there have been those that worry about the increasing centralization of BTC mining power. Russia and China constitute roughly 50% of the worlds mining capacity. By becoming increasingly centralized, BTC strays further from the very attributes that make it appealing. Companies such as Hut 8 are a welcome, and needed, addition to the world of mining.
Despite the positive progress seen by Hut 8, newcomers to mining in Canada may not receive such a warm welcoming. In recent months Quebec in particular has begun to crack down on these operations, as they deplete the excess power provided by the grid. Quebec has just ruled that new mining outfits within their province will be required to pay double the regular rate. In addition, they will only be fed power when there is excess in the system.
Even with Quebec playing hardball, look for mining outfits to continue to flock towards Canada. With cheap power, cool climate, and vast amounts of land, it is a perfect location.
In the short amount of time that Hut 8 has been operating in Alberta, they have already successfully mined almost 2000 BTC. An increase in hashing power was needed however. Despite the FIAT value of BTC dropping in recent months, the cumulative hashing power of the BTC network has continued to rise. It is now at an all-time high.
As most know, the more people mining BTC the more difficult the process becomes. As this continues, increasing amounts of hashing power are needed for the process to remain lucrative. With that being said, do not expect this to be the last announcement from Hut 8 regarding a jump in hashing power. To remain competitive, continued growth in their operations must be seen.