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Hut 8 Says Repairs to Damaged Crypto Mining Equipment Are Taking Longer Than Expected
The delays are impairing the miner's hashrate and bitcoin production.
Hut 8 Mining (HUT) said repairs to damaged equipment at its Drumheller, Alberta site are taking longer than expected because of power shortages and equipment failures.
“Progress in bringing the equipment back online has been slower than expected given frequent curtailments and hardware failures due to power surges,” the Toronto-based company said on Friday. “As individual miner hashboards are repaired and re-installed, other hashboards are failing and require repair, which is impairing our hashrate and production.”
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The company, which is in the process of merging with U.S. Bitcoin Corp., said last month that the site was running at 15% of its installed hashrate, with a restoration expected in 10-12 weeks. That timeline won’t be met, the crypto miner said, without giving a new estimate. The problems were first reported in March.
Shares of Hut 8 rose 1.3% to $1.985 in early trading on Nasdaq.
UPDATE (June 9, 13:36 UTC): Updates shares for early trading in last paragraph.
Sheldon Reback
Sheldon Reback is CoinDesk editorial's Regional Head of Europe. Before joining the company, he spent 26 years as an editor at Bloomberg News, where he worked on beats as diverse as stock markets and the retail industry as well as covering the dot-com bubble of 2000-2002. He managed the Bloomberg Terminal's main news page and also worked on a global project to produce short, chart-based stories across the newsroom. He previously worked as a journalist for a number of technology magazines in Hong Kong. Sheldon has a degree in industrial chemistry and an MBA. He owns ether and bitcoin below CoinDesk's notifiable limit.
