Elon Musk’s tweets, according to the firm, has accelerated its goal to become carbon-neutral within a year.
Hut 8 Mining, a Canadian cryptocurrency mining startup, is officially listed on the Nasdaq under the ticker HUT.
Hut 8 shares provide regular Nasdaq investors with exposure to bitcoin markets without requiring them to possess cryptocurrency. That isn’t to say it won’t face the same dangers. Not only is the corporation at the forefront of the crypto business, but it also has 3,500 Bitcoin on its balance sheet, worth around $138 million.
Since its inception in 2011, Hut 8 has only mined Bitcoin. According to Sue Ennis, Hut 8’s head of corporate development and investor relations, the company will begin mining Ethereum this week. Hut 8 is the first publicly traded North American mining business with a diverse portfolio, as Riot Blockchain and Marathon Digital Holdings, both Nasdaq-listed miners, are Bitcoin-only.
Until this week, Hut 8 had solely mined Bitcoin. The company’s Ethereum mining branch-out coincides with the Nasdaq IPO this week. Hut 8 bought $30 million worth of Nvidia crypto chips in March to mine Ethereum, and the business is putting them all together this week.
However, mining will be phased out once Ethereum 2.0 transitions from proof-of-work to proof-of-stake. Hut 8 will switch to Ethereum Classic mining when that happens, according to Ennis.
Hut 8 intends to broaden its mining activities even further, but not to the point where it will start mining “dog or meme” currency like Dogecoin, she said.
Hut 8 is a Nasdaq-listed company. The company is already listed on the Toronto Stock Exchange, with a share price of $4.99.
A Nasdaq listing, however, does not guarantee success.
Coinbase, a cryptocurrency exchange that went public on the Nasdaq on April 14, has seen its stock steadily decline in value. The stock began trading at $381 a share, then climbed to $424 before plunging to $310. It closed at $239 yesterday.
Hut 8, on the other hand, is unconcerned by Coinbase’s results. She stated, “That is not a barometer for the possibility for success or interest in investing in Nasdaq-listed crypto business.”
“Right now, the actual barometer is Bitcoin and Ethereum prices, as there is a fairly direct association between Bitcoin sell-offs and mining play sell-offs.”
However, the price of the two most important assets has been exceedingly unpredictable recently, to say the least.
The crypto market plummeted in mid-May, owing primarily, but not exclusively, to fears over Bitcoin mining. Tesla and SpaceX CEO Elon Musk’s remarks on the company’s environmental impact, as well as the Chinese government’s crackdown on miners, fueled the fears.
Make the switch to renewable energy. “[Elon Musk’s tweets] ignited a fire under everyone’s backsides that it was time to collaborate and speak with one voice,” Ennis added. Hut 8 is one of the Bitcoin Mining Council’s miners, an assembly of energy-conscious North American mining businesses organized by Michael Saylor in late May for Elon Musk.
When current CEO Jaime Leverton took over last year, ESG—environmental, social, and governance—concerns became one of the company’s top goals, according to Ennis. Musk’s tweets, on the other hand, have likely accelerated the process, she noted.
Hut 8 just hired a director of energy and sustainability whose primary mission is to make the company carbon-neutral in a year.
Hut 8’s machineries are currently powered by natural gas (70 percent) and wind (30 percent), both of which are abundant in Alberta, where the mining company is situated.
There are primarily two stated sources for the energy-source share in worldwide crypto mining. Renewable energy consumption is at 39%, according to a September 2020 report from the Cambridge Centre for Alternative Finance.
However, according to a report by crypto asset manager CoinShares, the ratio might be as high as 77.6%.
The condition of research is currently a bit of a jumble, with little consensus on figures. Hut 8 looks at all accessible datasets to make sense of it, according to Ennis.
Miners in China Environmental issues, on the other hand, aren’t high on the Chinese miners’ priority list, according to Ennis, who maintains regular touch with their representatives.
“I’ll be honest with you; I’m not hearing a lot of discussion about becoming green,” she admitted. Instead, miners are preoccupied with government-sanctioned relocation plans, with some already traveling to Kazakhstan and “rumors of [going to] Africa as well.”
Chinese miners have also inquired about the difficulty of relocating to Alberta, according to Ennis.
She wouldn’t disclose whether any of the Chinese miners had any concrete intentions to move to Canada, but she did add that the company is doing everything it can to persuade them to its new expanded facility.