As a seasoned analyst with years of experience in the cryptocurrency market, I find Hut 8’s decision to invest in 31,145 Bitmain Antminer S21+ machines a strategic move that could significantly boost their hashrate and potentially increase returns. The anticipated 66% increase in self-mining hash rate, from 5.6 EH/s to around 9.3 EH/s, is impressive and aligns with the trend I’ve seen among major Bitcoin miners who are continuously upgrading their hardware post-halving events.
As a crypto investor, I’m excited about the news that Bitcoin miner Hut 8 anticipates a substantial increase in its self-mined hash rate by approximately 66% around Q1 of 2025. This optimistic outlook stems from their decision to acquire 31,145 Bitmain Antminer S21+ machines, a move that underscores their commitment to enhancing mining capabilities.
In a statement released on November 6th, Hut 8 announced that they will be paying $15 for each terahash of mining equipment, which is set to be delivered in the first quarter of 2025.
Hut 8 anticipates that its mining speed will jump from 5.6 billion hashes per second to roughly 9.3 billion hashes per second (EH/s), following the installation of new machines, which represents an approximately 66% boost in capacity.
Following Hut 8’s announcement of an option to purchase with Bitmain in September, which could potentially increase their hash rate by around 15 EH/s, the firm might see further growth. If this option is exercised, their hash rate could reach even higher levels, potentially reaching up to 24 EH/s as early as Q2 2025.
After the April 2024 halving event, significant Bitcoin miners have consistently acquired new equipment to increase their mining power (or hashrate).
According to Hut 8 CEO Asher Genoot, they opted for the Bitmain Antminer S21+ machines because they offer a robust return on investment compared to more efficient models that demand larger initial investments.
“The S21+ offers a faster payback period than more efficient models across a wide band of future hashprice scenarios, enabling us to optimize investment returns and accelerate value creation.”
The use of 31,145 Bitmain Antminers is expected to boost the average operational efficiency of these miners from 31.7 joules per terahash (J/TH) up to 19.9 J/TH, representing a significant improvement of approximately 37%, as stated by Hut 8.
If Hut 8 exercises the purchase option for the U3S21EXPH ASIC miners as per their September agreement, the average efficiency of their mining fleet might decrease to approximately 15.7 Joules per Terahash (TH).
In simple terms, the Bitmain Antminer S21+ machines will be set up at multiple of Hut 8’s 11 mining facilities, whereas the U3S21EXPH ASIC miners acquired by Hut 8 will be housed by Bitmain.
Similar to many other Bitcoin miners, Hut 8 plans to leverage the higher hashrate for optimal profitability by utilizing its advanced Artificial Intelligence (AI) and high-performance computing ventures.
The news from Hut 8 came the day after Bitcoin reached a record peak, which followed Donald Trump’s win in the U.S. Presidential election.
On November 6th, the share price of Hut 8 (HUT) jumped up by 11%, reaching $18.59 – a trend that aligns with several other stocks in the cryptocurrency market, as indicated by data from Google Finance.
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2024-11-07 03:58