One of the largest American cryptocurrency mining companies, Hut 8, recorded a sharp decline in its own production in April.
Hut 8 cannot boast of good results
Hut 8, a BTC mining company, recorded a 36% monthly decline in BTC mining last month. Reason? Is this already a halving effect? NO. This mainly concerns the relocation of over 25,000 excavators from plants in Nebraska and Texas that were taken over by Marathon Digital Holdings.
Hut 8 mined 148 BTC in the last month. However, in March it was 231 BTC.
However, in its announcement, the mine also mentioned the division of the reward for miners.
In the context of halving, our team's operational capabilities allowed us to maximize the implemented hash rate after completing the transfer of our fleet (excavators) from hosted facilities to our own facilities and bringing the new capacity online
– said Asher Genoot, CEO of Hut 8.
Decrease in production
However, Hut 8 is not the only major bitcoin mining company to admit that its coin production has declined. According to industry magazine The Miner Mag, other public mining companies such as Bitfarms, Cipher, CleanSpark, Core Scientific, Riot and Terawulf also saw production declines ranging from 6% to 12% in April.
This is certainly the effect of the halving that took place on April 20 and reduced the reward for the new block by half – to 3,125 BTC – which also halved the mining to about 450 BTC per day (previously it was about 900 BTC).
For example, on May 6, Riot Blockchain announced that in April it had registered a 12% decline in the number of BTC mined (with 375 BTC produced – compared to 425 in March). The company claims that the situation will improve by the end of 2024. It hopes to increase its mining capacity.
Halving will probably also have an impact on the BTC rate. Miners will have to sell new coins at higher prices than before.
