Crypto mining is a lucrative — if controversial — business. Rigs can range from desktop-sized, built to generate passive income in an apartment, to giant monoliths that take up the whole of a barn or factory. This means anybody who wants to can buy into the growing trade. But the most lucrative crypto-mining ventures are that of crypto-mining companies. Hut 8 Mining (NASDAQ:HUT) is one of the largest of the publicly traded Bitcoin (CCC:BTC-USD) mining companies on the market. And with today’s news, investors are being incentivized to buy their own HUT stock.
Hut 8 describes itself as an “innovation-focused crypto mining pioneer.” The company primarily mines Bitcoin with its 94 BlockBox crypto mining machines — some of the most robust mining tools available on a commercial scale. Its facilities are located in Alberta, Canada, and as it reveals today, its Bitcoin holding amounts to hundreds of millions of dollars.
This morning, Hut 8 put forth a press release detailing a production update through August. The update highlights a strong past month for the company, and it makes known its impressive Bitcoin holding.
HUT Stock Surges as Bitcoin Holdings Top $200 Million
As Hut 8 reports, it is mining Bitcoin at an average of 10.5 coins per day; this might not seem like a lot, but that’s quite an impressive output by one facility. As the company notes, recent “upward network difficulty adjustments” have hampered mining output, but only slightly. Operating at its worst, the facility is still managing to accrue at least 9 BTC per day.
At this rate, the company is announcing a total haul of 326 BTC for the month of August. Hut has placed these 326 coins into custody, as it always does, with the intent to hold them in anticipation of further appreciation. The company has also revealed its total BTC holdings at 4,450. At current rates, this is equivalent to $220 million.
And the company has no plans to slow down. In fact, it is announcing that it will be adding 1,025 additional MicroBT crypto-mining machines to its fleet of BlockBoxes.
HUT stock is, of course, booming as a result of this news. Shares are appreciating nearly 12% on today’s session, and volume is large; 10.1 million shares of HUT are trading hands against the stock’s daily average of just 3.7 million.
On the date of publication, Brenden Rearick did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
