Hut 8 to upgrade local data processing centre

By Medicine Hat News on August 14, 2020.

Hut 8 will upgrade its data processing centre in Medicine Hat this fall as it takes over full management of the facility that handles cryptocurrency exchanges for a fee.

The firm will also begin renting out a portion of its facility to a client “crypto-miner” in order to diversify its income stream, according to financial statements and an operational update released this week.

The publicly traded company recorded net income of $2.84 million for the recent quarter, in which it says mining profit dropped steeply due to a planned halving of rates paid for the commodity.

The price of Bitcoin itself fell steeply to US$6,439 to begin the quarter on March 31, but ended the three-month period up about 50 per cent at US$9,138 in late June.

The Medicine Hat facility was built and managed via joint agreement with European chipmaker Bitfury, though Hut 8 announced on Aug. 4 its takeover of local operations, including 12 employees, will lead to lower costs.

It also says efficiency will be boosted as new hardware arrives in September and some other equipment is swapped with its other facility in Drumheller.

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