Canadian Bitcoin Farm Reports Record High Profits
Canadian company Hut 8, which claims to be the largest public mining company by capacity and capitalization, gained a record profit in the third quarter of 2018, as stated in the firm’s financial report.
From July to September, the farm mined 1978 bitcoins and increased its income to $13.5 million. This amount is 126% higher than the one for the previous quarter when Hut 8 received $5.9 million.
The company attributes its success to the deployment of new BlockBox miners, developed by Bitfury — in July it acquired 56 such miners and bought another 16 in September. The device is a compact data center for large-scale bitcoin mining, having a total area of about 46 square meters. Hut 8 set up these devices in the small town of Medicine Hat in the Canadian province of Alberta.
It is not the first city in Canada that may strengthen its economy through mining. Earlier, a bitcoin farm helped to revive a ghost town.
Hut 8 reports that the temperature in Alberta was unusually high this summer, which made the electricity prices rise. The company hopes to utilize its mining capacities fully in the colder months of the year and expects to get even more profit in the fourth quarter.
The Canadian farm is considered an industry low-cost — the company charges $3394 for mining one bitcoin, while the average market price for the service is about $6400. The firm was opened in December 2017 in an exclusive partnership with Bitfury, the large manufacturer of mining equipment. Since its launch, Hut 8 mined more than 4200 bitcoins.
As previously reported, a mining company in the US appeared on the verge of closing due to regulators.