Recent crypto market downturn many crypto firms in the industry amidst trembling and beleaguered situations. Mining sector also experienced turbulence and that led many crypto mining firms to face tough times. Many of these firms had to sell-off their bitcoins in order to continue with their operations. However, several bitcoin miners like Hut 8 Mining Corporations are exceptions.
Recently reported that the Canadian Bitcoin miner firm has added a significant amount of bitcoin in the month of July. This ensures that the firm successfully managed to maintain its strategy of long-term HODL during the volatility in the market.
On Friday, August 5th, 2022, Hut 8 mining disclosed that In July, the company generated 330 bitcoin. The average production rate of bitcoin was approx 10.61 BTC daily and the monthly production was somewhere around 113.01 BTC. The overall bitcoin reserve reached up to 7,736 BTC.
One of the largest public holders of bitcoin – Hut 8 – also trades on the Nasdaq and Toronto stock exchanges. HODL strategy of Hut 8 includes depositing all the self-mined BTC into custody. This way, they would be contradicting the increasing trend in the industry where miners were selling their bitcoin reserves amidst the bear market.
As reported earlier, crypto miners like Core Scientific had to sell about 7,202 BTC in order to pay for their servers and settle other expenses like debts. The company, however, later reported increasing its mining capacity by 10% and regain 1,221 BTC in the upcoming month.
In the meantime, in July 2022, another mining firm Argo Blockchain reported to reduce bitcoin holdings by 887 BTC. The firm also had to settle their loans with Galaxy Digital and also to further fund their business operations. Well known in the mining space, Riot Blockchain is also seen to reduce its bitcoin holdings, and that too for three consecutive months.
During last year in 2021, bitcoin mining was considered to be highly profitable and hence lucrative business. This was given the popularity and wide adoption of bitcoin all across the world. So much so that the average rewards over bitcoin mining rose by even four times than earlier. However, following the market downturn and bitcoin price crash in 2022, bitcoin mining space is one among the most affected sectors of the overall crypto space.