Hut 8 Mining’s (NASDAQ:HUT) February Bitcoin Production Drops

Hut 8 Mining (NASDAQ:HUT) mined 156 Bitcoin (BTC-USD) in February, marking a decline of 17% compared to 188 Bitcoin produced in January. The Canada-based crypto miner’s average production rate came in at about 5.6 Bitcoin per day.

Electrical issues at Hut 8’s Drumheller, Alberta site adversely impacted the company’s production levels. The company said that it is currently investigating the matter. Hut 8 held 9,242 Bitcoin as of February-end and claimed that it “continues to hold the largest amount of self-mined Bitcoin in reserve of any publicly-traded company.”

Hut 8 Mining expects to sell its February Bitcoin production to fund its operating costs. “This month we used a portion of our stack to cover operating expenses rather than seeking other financing options with less attractive terms,” said CEO Jaime Leverton.

Merger with US Bitcoin Corp. on Track

Meanwhile, Hut 8 is on track to close its previously announced merger with US Bitcoin Corp. in the second quarter of 2023. Last month, Hut 8 announced that it is merging with U.S. Data Mining Group, Inc., also known as US Bitcoin Corp., to form a new company called Hut 8 Corp., which will be a U.S.-domiciled entity. Existing shareholders of Hut 8 and US Bitcoin will own 50% each of the combined company.

The turmoil in the crypto market last year crushed crypto miners, providing merger and acquisition opportunities. Hut 8 is expected to gain access to hundreds of megawatts of cheap energy through this deal, while US Bitcoin Corp. would benefit from a partner with a solid balance sheet.    

Hut 8 shares have rallied 92% since the start of this year.