Crypto miner Hut 8 declared in a report on March 6th that it will be closing its Drumheller, Alberta, mining site. The site’s profitability has been severely damaged by rising energy bills and voltage problems, which is why the relocation has been made.
Asher Genoot, CEO of Hut 8, said, “We have determined that various factors, including elevated energy costs and underlying voltage issues, have significantly impacted Drumheller’s profitability.”
Even though Drumheller only contributed 1.4% of Bitcoin’s hashrate overall, the shutdown emphasizes the difficulties faced by cryptocurrencycurrency miners in the face of growing electricity costs. Hut 8 intends to hold onto the lease, nevertheless, and may reopen the location if circumstances change for the better.
The news comes as Hut 8 continues its westward growth, having opened a new 3.6 EH/s mining operation in Texas last week. Due to the unstable environment, industry peers like Riot Platforms and Marathon Digital have also seen hashrate decreases.
