Hut 8 Ends 2021 With 5,518 BTC In Reserve, Secures $30M Loan

Hut 8 mined 276 BTC in December, up from 265 in the previous month.The miner deposited all bitcoin mined into custody, as per its “hodl” strategy.Hut 8 now holds 5,518 BTC in reserve, a 97% increase from December 2020.

Hut 8, a publicly-listed bitcoin mining company, mined 8.9 BTC per day on average in December, totaling 276 bitcoin produced in the month, the company said in a statement Wednesday.

Following on its “hodl” strategy, Hut 8 said it deposited all bitcoin produced in the period into custody, and its bitcoin holdings now amount to 5,518 BTC, a 97% increase from the previous year-end.

“2021 has been a year of transformation for Hut 8, with a focus on not only rebuilding and upgrading, but future-proofing our operations,” Hut 8 CEO Jaime Leverton said in a statement.

Hut 8 said it also secured a $30 million equipment financing loan with Trinity Capital Inc. on December 30 through its wholly-owned subsidiary Hut 8 Holdings Inc. to access non-dilutive growth capital. The deal’s structure limits collateral support to a set of MicroBT machines being deployed to the miner’s Medicine Hat, Alberta, farm, Hut 8 said.

“This debt financing allows us to expand our capital structure and overall liquidity, while achieving an attractive cost of capital with limited security, in a traditional equipment financing arrangement,” Hut 8 CFO Shane Downey said in a statement.

The public miner’s December production outpaced its previous month’s performance by about 4%. Hut 8 mined 265 BTC in November as it leveraged Luxor Technologies’ pool services to increase its daily bitcoin revenue by switching computing power between blockchains while always receiving payouts in bitcoin.

Hut 8 said it currently has two exahashes per second (EH/s) of hash rate capacity installed, an increase of 125% from the end of 2020. In November, the company said it had a hash rate capacity of 1.7 EH/s.

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