Mining company Hut 8 has announced the closure of its Bitcoin mining platform in Drumheller, Alberta, Canada, citing power outages and increasing costs as the main reasons for the shutdown. Currently, Drumheller accounts for approximately 1.4% of Bitcoin (BTC) mining and consumes around 11% of its hash rate.

CEO Asher Genoot stated, “We have determined that the profitability of Drumheller has been significantly impacted by various factors, including elevated energy costs and underlying voltage issues.”

Despite the closure, Hut 8 plans to keep the lease on the property, leaving open the possibility of resuming operations in the future if market conditions improve.

Hut 8’s Future Plans

Recently, Hut 8 announced a partnership with Marathon Digital to construct a Bitcoin mining center in Culberson, Texas, with an expected hash rate of 3.6 EH/s. The new facility, with a power consumption of 63 MW, is estimated to cost 40% less than purchasing turnkey sites.

In February, Hut 8 reported a decrease in Bitcoin production compared to January, mining 292 BTC last month compared to 339 BTC in January. The company held 9,110 BTC at the end of February. Other major miners, such as Marathon Digital, Riot Platforms, and Bitfarms, also experienced a decline in BTC production ranging from 16% to 23% month-over-month.

As the cryptocurrency landscape evolves, Hut 8 remains committed to adapting its operations to ensure long-term success in the industry.

For more news and updates on the cryptocurrency market, visit Global Crypto News.

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