Key points:
- Hut 8 Mining release January production report, with a total of 308 bitcoin mined
- 16% of the company's production is down to the firm's GPU miners
- Stock dropped just under 8% today, outlining the volatility involved in digital assets
Hut 8 Mining Corp (NASDAQ-NMS: HUT) released January production numbers today, and for crypto-swayed investors; they certainly seem promising. The firm mined a total of 308 bitcoin over the month, working out at an average of 9.93 per day. Still, the market didn’t look favorably on the results – with Hut 8 stock dropping nearly 8% on market open.
The monthly mining output outlined an evident increase from December, which produced 276 bitcoin with an average of 8.9 per day. Roughly 16% of the company’s production has been attested to the firm’s GPU miners, which mine Ethereum but receive the payout in Bitcoin – thereby reducing the average cost to around $2,600 per BTC.
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All of the company’s self-mined Bitcoin for January have been deposited into custody; totaling an end-of-month balance of around 5,826 bitcoin – at a value of $271.6M. So, is the company attractive for investors? On a growth basis, Hut 8 is showing clear-cut improvements in production.
The company recently acquired more mining equipment from Foundry Digital, further boosting mining capability. Furthermore, the company has announced plans to acquire the cloud and colocation data center business TeraGo for $30M – demonstrating expansion across multiple sectors.
However, until long-term contracts that shied the company from volatility in digital assets are a firm part of the company’s fundamental strategy – there is still a lot of short-term risks for the cautious investor.
