Hut 8 Bitcoin mining production is down 36% after halving

In April, Hut 8, a major player in the North American Bitcoin mining space, saw a 36 percent drop in Bitcoin production. This fall follows the recent Bitcoin halving event and the relocation of the company's mining operations.

Unlike the wider decline in the industry, production decreased by 6-12%, Hut 8 showed a significant decrease of only 148 bitcoins in April compared to March.

Hut 8 and the effect of Bitcoin reduction

This decline was primarily due to the shift of mining hardware from the Kearney and Granbury areas to Texas. The site, located in Salt Creek, was energized three months after construction began with a generating capacity of 63 megawatts.

The move is part of a broader strategy to consolidate Hut 8's mining operations into a single, more efficient location.

The production cut coincided with a drop in the company's hashrate, which dropped 51% from its peak in December, shortly after Hut 8 merged with USBTC. The company's CEO, Asher Ginot, emphasized that more than 25,000 mines have been relocated in eight days. It was a quick transition aimed at reducing work time.

Read more: 5 best platforms to buy Bitcoin mining stocks before 2024 halving

Hut 8 further boosted its capacity, increasing its total mining, hosting and management capacity to over one gigawatt. This includes the partial activation of a new 215-megawatt station dedicated to Ionic Digital in Ward County, Texas.

On the other hand, Hut 8 shares fell 7.46% after it was announced that they were trading at $8.19. Hut 8 is one of the smallest mining companies in the market, with a market capitalization of 732.8 million dollars.

On another note, GoMining has raised $3 million in direct investment from Bitscale Capital, a top international VC fund. The deal will see Bitscale Capital acquire $3 million worth of equity in the form of GOMINING, a native cryptocurrency token.