Publicly Traded Mining Company

[jbillk]

Hut8

https://hut8mining.com/

Was doing some research on this company. Interesting because all financials and business operations are public, and regulated. Trades under TSX-V: HUT (Toronto stock exchange)

Here are some facts:

Cost to mine one Bitcoin last quater : US$2,757
Current total hashrate : 963 P/H
Bitcoin mined last quarter : 2,816

Not financial advice, but $2,757 per bitcoin is pretty good. Share price seem highly correlated with BTC price.

[gentlemand]

Seems like risk on top of more risk to me. The amount of miners who've come and gone makes for very lengthy reading these days. As soon as things turn south places like this will vapourise.

I don't pay any attention to mining but that cost figure is surprising. Perhaps that explains the spiralling hash rate.

[YuginKadoya]

I am pretty Cautious about investing in a site that lets you mine for bitcoin and the cost in mining bitcoin I guess it is also increasing rapidly in my opinion, It is pretty much tempting after seeing some upgrades they did and the facilities they owned in Canada that has a low-cost electric bill because of certain wind and solar power they provided on each RIG, But sorry I am pretty cautious with investing online for mining because I am a victim of a recent mining scheme.

[The Sceptical Chymist]

It's a penny stock that trades with very low volume--not something I'd be interested in, although I do find this company's existence and the fact that they're publicly traded interesting.  If they're legit and actually make a profit (you can't just go by how much it costs for them to mine 1 BTC), I suppose it would be a decent way to get into mining without actually having to mine.  Reminds me of investors who buy copper mining stocks instead of buying metals.

The amount of miners who've come and gone makes for very lengthy reading these days. As soon as things turn south places like this will vapourise.

Those would be my concerns as well.  I'm not sure what their real cost is to mine a single bitcoin and it isn't clear what factors they included in that quote, but the whole company would be in serious jeopardy if bitcoin crashed.  Anyway, the company is too new and unproven and it looks just like any other pink sheet company that could be a scam.  No way I'd buy any of this stock.

[1Referee]

Sounds like a scam. No way the cost of mining is below $3000. It would have incentivized miners to unload a large chunk of their coins OTC, which isn't happening looking at activity of their mining addresses in the last couple of months.

The sole reason for the hashrate to go through the roof is that miners are speculating on even higher prices. Last year the hashrate went through the roof as well, but we saw what happened when the price took a dive. It's not out of the ordinary to see the same happen again when the price breaks out of its descending triangle southwards.

[buwaytress]

Seems like risk on top of more risk to me. The amount of miners who've come and gone makes for very lengthy reading these days. As soon as things turn south places like this will vapourise.

I don't pay any attention to mining but that cost figure is surprising. Perhaps that explains the spiralling hash rate.

And probably disappear weeks and months before the investors are even aware of. Even companies like Bitmain aren't transparent about everything (to me one of the real reasons they keep stumbling about their IPO plans is their reluctance to open themselves to due diligence re their actual mining operations), never mind a Canadian company no one's ever heard of. Roughly 32 Bitcoins a day means they have enough to find roughly 2.5 blocks a day. That's more than the % of hashpower they claim to have vs global.

[Slow death]

I checked the team members:



Andrew Kiguel ( Co-Founder, President, CEO and Board Member Hut 8 Mining Corp. )

is a real person and was at this year's consensus conference

https://www.blockchainconferences.io/en/speakers/andrew-kiguel

Jimmy Vaiopoulos ( I found nothing about him )

Michael Perrow ( I found nothing about him )

Bill Tai ( Valley investors )

I found him in this article: https://www.ozy.com/fast-forward/the-hot-new-players-in-silicon-valley/32422

Joe Flinn ( I found nothing about him )

Dennis Mills ( I found nothing about him )

Jeremy Sewell ( Chief Financial Officer for the Bitfury Group )

https://bitfury.com/team/executive-profiles/jeremy-sewell

Gerri Sinclair ( I found nothing about him )

seems to me to be a project that still needs further research to determine whether or not they are reliable

[Steamtyme]

It's been a while since I looked into them, but came across them a few times over the last year, once when I was fishing for hashrate to join a pool. This whole traded company stuff is new to me there but is surprising to see since they are already large established and showing profitability. In regards to their price to mine a BTC that seems fairly legit for a couple of reasons. Most of their gear is likely already reached the point of ROI, so now there is minimal cost apart from general facility maintenance and utility charges. Here's where it gets really interesting, in certain areas of Canada it's not hard to find Electric rates of .04-.06 USD and those are the advertised rates to the public a large facility can generally cut that down a bit.

Those numbers will be taking a hit though soon, as hashrate is back on the climb. It did just cross my ind that they may be looking for investors to try and upgrade their gear anticipating the hashrate increases and preparing for the halvening. Can't say I'd have the stones to run an operation this large (but still small by comparison) looking into that future.

[DaveF]

Depends on how they are depreciating / depreciated the miners.
Saying they achieved ROI is tricky vs the purchase price of the miner + electric + facilities etc. depending on how they wrote down the cost of the miners.

I would have to dig into the financials to see, but I'm too lazy to do that at the moment.

-Dave

[1miau]

Seems to be a legit company, I've visited their website and channel on YouTube although I would expect much more content from a company of that size (950 PH/s is quite impressive).

It's interesting that they haven't done much marketing yet or at least I haven't heard from them. Most likely because they are going more into official stock business instead of a tokenized business model. (Would be a better idea imho).

Will be interesting to see how they are planning to deal when the first generation of miners will pass away.

But after all I like the idea behind it. Instead of Bitmain and other big mining facilities Hut 8 isn't filling solely their own pockets. 

[shaw1]

Any Canadians actually invest in this?

Quite curious as to what your thoughts are.

They appear to have a market cap of 190 million?
That seems a bit steep to me.

Would be cooler if they were a dividend stock, but that doesn't appear to be the case.

They've been around since 2017, so the last crash didn't seem to kill them...

Interesting...
I wish them well. That would be a cool derivative investment from regular crypto.

[Kyraishi]

Never a fan of mining companies, the community has seen way too many of them crowdfund or raise enough money, they work for a couple of months or maybe a year, and then something happens and everything goes to shit, the company is bankrupt, investors lose all their money and everyone is crying...

To be fair though, this seems like the best one I've seen so far - they are publicly registered and fully transparent and authorized to do everything and If I was a Canadian, or American investor wanting to get in mining, this is one of the first places I'll go - I am correct in assuming that people from those countries would be good to invest in it? It seems like a regular public company, so it should be fine, right?

[michellee]

Not a good idea to invest in cloud mining. I think it sounds like a new project which hiding in a mining section, but I don't have any idea about that. Mining hardware cost big money, and it's not easy to set up the equipment, especially if they want to build a farm. In their whitepaper, I don't see an interesting idea that will make the investors join, but I don't know with the others. I will stay away from the project, which offers to mine with them because today, it is difficult to earn many rewards from mining. And it needs a big power of hash rate to mining bitcoin.

[shaw1]

Not a good idea to invest in cloud mining. I think it sounds like a new project which hiding in a mining section, but I don't have any idea about that. Mining hardware cost big money, and it's not easy to set up the equipment, especially if they want to build a farm. In their whitepaper, I don't see an interesting idea that will make the investors join, but I don't know with the others. I will stay away from the project, which offers to mine with them because today, it is difficult to earn many rewards from mining. And it needs a big power of hash rate to mining bitcoin.

I guess they dont really have a real mining equipment just a website just like other cloudming do. If they really have the percent of interest is very litlle since its not really profitabel now to mine.

I check the website i dont see any option to invest other than enter your email.

That's because they aren't a cloud mining provider.
They are a company whose business is mining.

Given their publicly traded status, I very much believe they have mining hardware.
And if you have prepaid electric bought when bitcoin was high, (which they appear to have contracts for), then it could also still be profitable, as well.
(Not saying this company is a good bet. Just explaining what I've found out about them.)

You can't invest in a "contract".
You can only invest in the company itself.

Shares of the company, just like you could buy shares of Microsoft, or Disney.

[badykvik]

This look very legit to some extents, they are listed on stock exchange and publicly traded but there are few information about the company and its potential profits that are known to the public, they can not be found at https://hut8mining.com/investors/investor-faqs#top also.
1, The company registration number (Location is canada)
2, The potential ROI calculator
3, Minimum and maximum investment.

[Kyraishi]

Not a good idea to invest in cloud mining. I think it sounds like a new project which hiding in a mining section, but I don't have any idea about that. Mining hardware cost big money, and it's not easy to set up the equipment, especially if they want to build a farm. In their whitepaper, I don't see an interesting idea that will make the investors join, but I don't know with the others. I will stay away from the project, which offers to mine with them because today, it is difficult to earn many rewards from mining. And it needs a big power of hash rate to mining bitcoin.

This sort of project does alleviate some of the pressure that cloud mining companies place on you as an investor though, for example, they are a fully registered company and are on the stock exchange, so you will definitely know they are legit, and I don't think they are cloud mining anyway, it's hard to give an opinion on this when we are left with no information about them.

Not a good idea to invest in cloud mining. I think it sounds like a new project which hiding in a mining section, but I don't have any idea about that. Mining hardware cost big money, and it's not easy to set up the equipment, especially if they want to build a farm. In their whitepaper, I don't see an interesting idea that will make the investors join, but I don't know with the others. I will stay away from the project, which offers to mine with them because today, it is difficult to earn many rewards from mining. And it needs a big power of hash rate to mining bitcoin.

I guess they dont really have a real mining equipment just a website just like other cloudming do. If they really have the percent of interest is very litlle since its not really profitabel now to mine.

I check the website i dont see any option to invest other than enter your email.

That's because they aren't a cloud mining provider.
They are a company whose business is mining.

Given their publicly traded status, I very much believe they have mining hardware.
And if you have prepaid electric bought when bitcoin was high, (which they appear to have contracts for), then it could also still be profitable, as well.
(Not saying this company is a good bet. Just explaining what I've found out about them.)

You can't invest in a "contract".
You can only invest in the company itself.

Shares of the company, just like you could buy shares of Microsoft, or Disney.

Where did you find this information? And yes, that's what I thought it was about, your buying into the company, not investing in a cloud mining operation with "guarenteed" returns, this is more traditional and your buying stock.