Hut 8 maintains a HODL strategy for Bitcoin in a crumbling market, defying market trends of selling off a portion of their Bitcoin. Other Bitcoin miners have decreased their BTC holdings during the bad market, including Core Scientific, Argo Blockchain, and Riot Blockchain.
Hut 8 Mining Corp., a Canadian Bitcoin (BTC) miner, increased its enormous BTC reserves in July while maintaining its long-term “HODL strategy” in the face of market turbulence.
The firm, which has its headquarters in Alberta, produced 330 Bitcoin in July at an average rate of 10.61 BTC per day, bringing its total supply to 7,736 BTC. According to information released by the business on Friday, it produced 113.01 BTC per exahash on a monthly basis.
According to market data, Hut 8 is one of the biggest public Bitcoin holders.
Hut 8 deposed all of its self-mined Bitcoin into custody as part of its continuous HODL policy, defying a rising industry trend whereby miners sell a portion of their reserves during the bad market. Texas miner Core Scientific sold 7,202 BTC in June for an average price of $23,000 to pay for servers and pay off debts. After boosting its mining production by 10% the next month, the company earned back 1,221 BTC.
Argo Blockchain, a mining company, decreased its holdings in July by 887 BTC to pay off a loan agreement with Galaxy Digital and to fund its operations. Separately, in order to raise money for its operations, Riot Blockchain reduced its Bitcoin holdings for a third straight month in June.
Since the average profit per bitcoin mined in 2021 was more than four times higher than the average in the previous year, mining bitcoin was a very profitable enterprise. Miners that are in the red have been forced to sell into a deteriorating market due to the collapse in Bitcoin values in 2022.
HUT 8’s shares increased 3.5 percent on Friday to close at $2.38. The stock has lost approximately 70% of its value so far this year and 80% of its value since its peak on November 8, 2021, when Bitcoin was selling at around $70,000.
Hut 8 Production Highlights – July 2022:
- 330 Bitcoin generated with an average production rate of 10.61 BTC per day
- ETH mining – received payment in BTC – generated 10.7% of total production
- 100% of self-mined BTC deposited into custody
- Total BTC in reserve – 7,736
- Installation of operating capacity was 2.92 EH/s at the end of July
- Produced 113.01 BTC/EH in July
Hut 8 maintains a HODL strategy in this crumbling market for now, but will it last? We will be watching very closely.
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