Canadian Bitcoin mining company HUT 8 has revealed a $30 million investment in cryptocurrency mining equipment from manufacturer NVIDIA, known as CMP (Cryptocurrency Mining Processor), to boost the mining of Ethereum and other alternative cryptocurrencies.
HUT 8, one of the mining companies Bitcoin Canada's oldest and largest cryptocurrency exchange, listed on the Toronto Stock Exchange, is betting on alternative cryptocurrency mining, such as Ethereum (ETH), which is experiencing a high level of growth and appreciation in the markets in the medium and long term.
In a release Shared with its customers, HUT 8 revealed that it is adding cryptocurrency mining equipment from technology manufacturer NVIDIA, specifically those known as CMP (Cryptocurrency Mining Processor)With the addition of these rigs, HUT 8 aims to significantly increase its ETH hashing power. The crypto mining company says it will boost its mining power to around 1.600 gigahash per second (GH/s), which will be used to mine cryptocurrencies on alternative blockchain networks, such as Ethereum, and expand its mining business while maintaining the benefit of Bitcoin payments.
HUT 8 considers diversifying its mining revenues essential, while at the same time taking the opportunity to pursue additional computationally intensive applications within the high-performance computing space. All of this with a view to diversifying its revenue streams and taking advantage of the full potential that the technology currently offers.
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$1.300 billion in mining revenue on Ethereum
HUT 8's mining revenue diversification plan responds to the company's immediate short- and long-term revenue growth objectives for fiscal year 2021.
Currently, Ethereum mining is one of the most profitable activities in the crypto industry, due to the high gas costs experienced in the network, as of the date of this publication. According to data from The blockEthereum miners earned $1.370 billion in revenue in February, while this month, whose metrics are still incomplete, miners have already collected $1.260 billion in profits. Of this revenue, between 49-52% comes from commission fees paid by network users to confirm their transactions.
Source: The Block
HUT 8 CEO, Jaime Leverton, I declare that “The adoption and development of applications that interact with various blockchain networks has never been stronger, opening up many possibilities in a variety of industries”Leverton refers to the multiple ways the crypto industry offers to generate income.
The investment in NVIDIA equipment makes it possible for this crypto mining company to not only mine bitcoins, but also other types of cryptocurrencies that are gaining greater importance within the markets.
HUT 8 expansion, growth and development plans
NVIDIA's new mining equipment will allow HUT 8 to mine cryptocurrencies such as ethers, opening up new value opportunities for the company, allowing it to continue consolidating its growth, development and expansion plans in the short, medium and long term.
NVIDIA's $30 million investment in graphics cards to diversify its revenue comes as several companies are already feeling the shortage of chips for the manufacture of ASIC equipment to mine bitcoins, as reported by Alex Ao, vice president of Innosilicon, a chip development and Bitcoin mining equipment manufacturing company.
At the end of January, HUT 8 announced the investment of more than 11 million dollars in mining equipment specialized in Bitcoin, to increase its hash rate power within this important blockchain network. In addition to HUT 8, other companies such as bitfarms, Marathon Patent Group, Hive and others have also announced their plans for expansion and growth in North America, in order to geographically decentralize the Bitcoin network, which is dominated by China in terms of hash rate. These companies have placed massive pre-purchase orders for Bitcoin mining equipment to secure their future within this growing and powerful industry.
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