Posted on

Bitfury-Backed Group Mined 800 Bitcoins in Q1

The Bitfury-backed Hut 8 Mining Group mined more than 800 bitcoins in the first quarter of 2018, the company reported Thursday.

In a summary of its quarterly financial results, the company noted it raised $70 million CAD to continue investing in mining hardware, generated nearly $11 million CAD in revenue and is one step closer to opening another facility in Canada. Chief executive Andrew Kiguel said he was “pleased” with the work conducted so far, given that Hut 8 first began operations in late December 2017.

The 828 bitcoins mined in the first quarter of 2018 join another roughly 500 coins mined since December, meaning the company currently has a reserve of more than 1,300 bitcoins, he said in a statement. However, Hut 8 is not done developing its facilities: he noted that the company has begun construction of a new datacenter in the City of Medicine Hat, which will more than triple the company’s mining capacity.

The new facility will launch production in September, he said, adding:

“The City of Medicine Hat site will consist of an additional 40 BlockBoxes. Once operational, Hut 8 will own 57 BlockBoxes, representing a 335 percent increase from current mining capacity, securing our position as one of the largest publicly traded Bitcoin miners in the world, with a total of 66.7 MW of power capacity and 448 PH/s. With this increase in BlockBoxes from 17 to 57, we expect that our daily mining production will increase significantly. We believe our City of Medicine Hat Facility will represent operational excellence and set a new global benchmark for industrial scale cryptocurrency mining operations.”

At existing costs, Hut 8 spends approximately $2,615 CAD per bitcoin mined, according to the report. However, due to bitcoin’s dropping price, it is recording a loss of nearly $4 million CAD on its profit margin. Excluding depreciation, its gross profit is nearly $9 million, the company said.

Datacenter image via Shutterstock

The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.

Posted on

UNICEF Is Mining Crypto to Raise Funds for Children

The United Nations Children’s Fund (UNICEF) is seeking to harness supporters’ computers to raise donations via cryptocurrency mining.

To that end, the organization has launched “The Hope Page” – a website that mines cryptocurrency with the help of visitors’ computer processing power. The non-profit described in a statement that site will “allow Australians to provide help and hope to vulnerable children by simply opening the page while they are online”, ITnews Australia stated.

According to the website, Hope Page allows visitors to select how much processing power they want to contribute to the mining process. The longer they stay on the site, the more cryptocurrency is mined.

UNICEF states:

“Mining is perfectly safe for your computer. If you’re ever worried about power consumption, turn down the amount of processing power you’re donating.”

Any cryptocurrency mined is turned into fiat currency and donated to UNICEF Australia to be used for help vulnerable children worldwide with life-saving supplies such as safe drinking water, food and vaccines.

The browser miner is powered by an opt-in version of the Coinhive API, AuthedMine, and mines the monero cryptocurrency.

According to Jennifer Tierney, director of fundraising and communications for UNICEF Australia, the organization had been seeking to use emerging technologies to raise awareness about current humanitarian crises and collect donations to support affected children.

At press time, over 1,600 people were seen donating computer power to aid the organization.

UNICEF tent image via Shutterstock

The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.

Posted on

Bitfury-Backed Bitcoin Miner Secures Canadian Land Deal

Bitcoin mining firm Hut 8 is officially setting up shop in Alberta, Canada.

The Bitfury-backed company announced Monday that it had secured a deal with the city of Medicine Hat to both lease land and receive 42 megawatts of electrical power for a new mining facility. In turn, Hut 8 will inject $100 million into the local community by way of a construction project.

The new building is fully funded, the company announced in a press release, and the facility will join Hut 8’s existing, smaller building in Drumheller, which uses 18.7 megawatts to power its array of machines.

The contract between Hut 8 and the City will last 10 years, and will begin after several regulatory agencies sign off on the company’s work.

Bill Tai, chair of Hut 8’s Board of Directors, said the agreement is a key step in the company’s plans to start using its BlockBox Data Centers.

“CMH offers stable cost-competitive utility rates and has been very welcoming and supportive of Hut 8’s fast paced growth plans,” he said in a statement. “We’re excited to work with the City of Medicine Hat to introduce a new industry, with new revenue channels for the City and its residents.”

To build out its facilities, Hut 8 will hire some 100 workers, with 42 employees set to be hired full-time in order to run the mine. Hut 8 will recruit from the local community, according to the press release.

The land deal comes after the company announced it would be listed on the Toronto-based TSX Venture Exchange, where its shares are now publicly traded.

Construction image via Shutterstock

The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.