• Hut 8 Mining (HUT) is facing operational issues at its bitcoin mining sites, such as an energy provider dispute and electrical issues.
• The company is also in the process of completing a merger with U.S. Bitcoin Corp., which will give it access to additional power for mining rigs.
• In Q4, mining profit for Hut 8 plunged to CAD$3.33 million (US$2.4 million).

Hut 8 Mining Facing Operational Issues

FinanceBitcoin Miner Hut 8 Talks Operational Issues and U.S. Bitcoin Corp. Merger in Earnings CallManagement spoke to investors on Thursday morning following release of the company’s fourth-quarter and full-year 2022 results.By Eliza GkritsiMar 9, 2023 at 6:09 p.m. UTCUpdated Mar 9, 2023 at 7:34 p.m. UTC

North Bay Site Dispute

Operational issues across its bitcoin mining sites are weighing on Hut 8 Mining (HUT) as it tries to complete what would be one of the largest deals in the sector – the company’s merger with U.S. Bitcoin Corp.. In mid-November 2022, Hut 8 stopped mining with 7,000 rigs at a site in North Bay, Ontario due to an ongoing dispute with its energy provider, Validus Power .Hut has now removed all machines from the facility to a site in Medicine Hat, Alberta . Pressed about progress by analysts on the company’s earnings call Thursday morning, Hut 8 CEO Jaime Leverton said the firm is assessing opportunities to energize the miners , but didn’t give any concrete alternatives .

Drumheller Site Electrical Issues

At its Drumheller site in Alberta , Hut 8 has been facing “electrical issues” that have hit operations . “We are in the early stages exploring supplementary options to mitigate the challenges and hope we have more definitive plan,” said the firm’s newly appointed chief financial officer , Shenif Visram , during the conference call .

Q4 Results

Hut 8 shares are down 8% on Thursday , as are those of its mining peers , as bitcoin slides to its lowest level in a month at $21 , 450 .In Q4 results , mining profit plunged to CAD$3 . 33 million ( US$ 2 . 4 million ) from $ 39 . 2 million ( US$ 28 . 4 million ) during the same period last year due mainly to higher costs associated with relocating equipment from North Bay and transitioning idle machines back into production mode ..

Merger With U.. Bitcoin Corp.

Hut 8 did receive a letter of no action from Canadian competition authority for its proposed merger with U .. Bitcoin Corp .. meaning they don’t plan to challenge move according Leverton during call .. Main focus now is completing merger which will give it access additional power for mining rigs …