Last Updated: 8 August 2022
Canadian bitcoin miner, Hut 8 Mining Corp., added bitcoin again in July to their already impressive total. The Alberta-based company generated 330 bitcoin in July, bringing its average production to 10.61 bitcoin. This brings Hut 8’s total to 7,736 bitcoin.
Bitcoin miner Hut8 doet niet mee aan capitulatie en heeft nog geen bitcoin verkocht #bitcoin $BTC https://t.co/uKnmnmJBUY
— Bitcoin Magazine NL (@BitcoinMagNL) August 7, 2022
Only Marathon Digital is bigger
For a long time, Hut 8 had to outstrip both Marathon Digital and Core Scientific in terms of reserves. However, after the capitulation, Core Scientific had to sell more than 7,000 bitcoin in June, and only Marathon Digital is left in that respect.
The latter has over 10,000 bitcoin on its balance at the time of writing. Hut 8 still has some work to do to achieve this, but it’s still a very impressive achievement by the Canadian miner, especially when you consider that the market cap of Marathon Digital is about 3 times that of Hut 8. Marathon Digital is sitting on a market cap of 1.5 billion dollars, while Marathon Digital has to make do with approximately 0.5 billion dollars.
If we were to correct for that, Hut 8 is by far the largest bitcoin holder among miners.
Bitcoin mining industry under pressure
Bitcoin mining was a lucrative business, especially in 2021. Thanks to the bull market, miners’ margins suddenly shot up like a rocket. The average turnover per bitcoin mined more than quadrupled, and everything these parties touched turned into gold.
Then the prices started to fall and plummeted in 2022. Suddenly, miners had a lot less money coming in, and all the energy contracts and supply contracts for new mining hardware could no longer be fulfilled.
As a result, many miners were forced to sell their reserves. Hut 8 shares shot up by 3.5 per cent on Friday, eventually reaching a price of 2.38 dollars. This means the share is still 70 per cent away from its initial price of 2022.