Hut 8 Cryptocurrency announced this week that it is cutting its operating rate by half — thereby cutting power consumption by the same percentage — in order to “optimize” its operations and margins as the price of Bitcoin drops.
The data-processing company earns Bitcoin for handling transactions of the most-popular cryptocurrency, but the market price has fallen steeply along with other financial instruments this week in turbulent markets.
Traders were paying about US$8,000 for a bitcoin on March 11, before falling by 50 per cent by early this week. It had rebounded to sit at about $6,600 in early trading on Friday.
The Company has a contract with the City of Medicine Hat’s power utility to use up to 67 megawatts of power at its north-end facility. That figure could comprise up to one-quarter the city’s total power production capacity.
Power production at the city’s facilities on Friday morning was steady at 155 megawatts, more that half of the 255-megawatt generating capacity, according to the Alberta Electric System Operator.
