In a report on March 6th, crypto miner Hut 8 announced it will be shutting down its Drumheller, Alberta mining facility. The move comes as the site grapples with soaring energy costs and voltage issues that have significantly impacted profitability.
“We have determined that the profitability of Drumheller has been impacted significantly by various factors, including elevated energy costs and underlying voltage issues,” stated Hut 8 CEO, Asher Genoot.
While Drumheller accounted for just 1.4% of Bitcoin’s total hashrate, the closure highlights the challenges crypto miners face amid rising electricity prices. However, Hut 8 plans to retain the lease, leaving open the possibility of reopening the site if conditions improve.
The announcement follows Hut 8’s launch of a new 3.6 EH/s mining facility in Texas last week, as the company continues its westward expansion. Industry peers like Marathon Digital and Riot Platforms have also reported hashrate declines amid the volatile climate.
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