Hut 8's Alberta Bitcoin Mine Running at 15% Installed Hashrate Due to Electrical Issues

The firm has been facing operational issues as it tries to complete a merger with U.S. Bitcoin Corp.

AccessTimeIconMay 9, 2023 at 11:28 a.m. UTC
Updated May 9, 2023 at 7:43 p.m. UTC

Hut 8 Mining's (HUT) site in Drumheller, Alberta is currently running at 15% of its installed hashrate due to electrical issues, with a restoration expected in 10-12 weeks, the firm said on Tuesday.

The miner, which is undergoing one of the most significant mergers in the industry with U.S. Bitcoin Corp, first announced the issues in March.

  • What Do EigenLayer's Outflows of $2.3B Signal?
    00:57
    What Do EigenLayer's Outflows of $2.3B Signal?
  • What Do TradFi Crypto Moves Mean for Decentralization?
    04:20
    What Do TradFi Crypto Moves Mean for Decentralization?
  • Marathon Digital Buys $100M BTC; India's Special Task Force for Crypto-Related Drug Trafficking
    02:02
    Marathon Digital Buys $100M BTC; India's Special Task Force for Crypto-Related Drug Trafficking
  • Ether Slides as Grayscale's ETHE Outflows Ramp Up
    00:53
    Ether Slides as Grayscale's ETHE Outflows Ramp Up
  • "High energy input levels" into the machines has been causing "equipment failures" at Drumheller, while spikes in energy prices have created "additional headwinds," the firm said. Hut 8 has implemented firmware to decrease the voltage of the power supply, while it is trying to repair machines and hire more staff.

    Hut 8 did not respond to CoinDesk's request for additional details on the Drumheller mine.

    The Drumheller site likely accounts for as much as 0.9 exahash/second (EH/s) of Hut 8's computing power. Total installed hashrate across its two Alberta sites was at 2.6 EH/s at the end of April. The Medicine Hat site in the Canadian state "hit an all-time operational high" of 1.72 EH/s in March, the firm previously said.

    Hut 8 also had to stop running 8,000 miners at its third site in North Bay, Ontario due to a dispute with its power provider, in mid-November, and move them to Medicine Hat. Hut 8 hasn't found a way to operationalize all of them as of the end of April.

    CORRECTION (May 9, 19:43 UTC): A previous version of this story said that Hut 8 also had to stop running 7,000 miners at its third site, instead of 8,000 miners.

    Edited by Parikshit Mishra.


    Disclosure

    Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

    CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

    Eliza Gkritsi

    Eliza Gkritsi is a CoinDesk contributor focused on the intersection of crypto and AI.