Hut 8 Mining (named after Hut 8 in Bletchley Park, where Alan Turing broke the enigma code and accelerated the end of World War II) has just filed its audited financial statements for 2018, detailing a tight but still profitable bitcoin mining business.
According to Hut 8, it is currently the largest bitcoin mining company operating in North America (with Hive a close second). In an exclusive interview with Bitcoin Magazine, Hut 8 CEO Andrew Kiguel described how his company withstood crypto winter and progressed while many in the industry were making cuts or closing down.
“Last year was not profitable for many miners,” Kiguel said. “It was a tough year for us too, especially the end of the year. Our goal is to remain lean, operate efficiently and be able to withstand any short-term changes in price and make it to the next positive bitcoin pricing cycle … Hopefully, we are starting that now.”
In 2018, Hut 8 recorded a $18.2 million profit with revenues of $36.6 million and a net operating loss of $8.2 million. It has reported a gross mining profit margin of 50 percent for the year. Since beginning its operations in December 2017, Hut 8 has mined over 8,800 bitcoins.
Mining in Canada
Hut 8 has two mining sites in Alberta, Canada, which leverage 85 BlockBox AC centers — 56 in Medicine Hat and 29 in Drumheller.
Like some other Canadian provinces, Alberta is courting new information technologies and data centers like those used for bitcoin mining, as traditional resource industries decline and available energy supplies increase.
Why Alberta? Kiguel said that Hut 8 gets one of the lowest, if not the lowest, energy rates in Canada and that the Alberta government is positioning itself as business friendly.
A Bitcoin Only Business
Kiguel credited much of Hut 8’s success to a fast start in 2017 and a decision to focus on…