Bitcoin miner Hut 8 and Riot Blockchain are aggressively upgrading

Mining companies are also benefiting from the current soaring in cryptocurrencies. Mining giant Hut 8 plans to raise USD 400 million on the Toronto Stock Exchange, a current prospectus shows. But the competition never sleeps.

Bitcoin mining company Hut 8 is trying to raise 500 million Canadian dollars – the equivalent of about 400 million USD – by issuing additional securities. This goes out public documents emerged. A prospectus dated April 7th shows that the offering will take place on the Toronto Stock Exchange, where the company’s shares are already trading. A ruling penned by the Ontario Securities Commission was released on April 7th.

Hut 8’s attempt to raise funds may come as a surprise given the bullish performance in mining stocks. Miners have increasingly drawn the interest of institutional investors seeking indirect exposure to Bitcoin. This increased interest has also led to increased prices for mining hardware.

Hut 8’s share price is an example of that of many other mining companies. While the paper was traded below USD 1.60 four months ago, it is currently at CAD 8.56. In March, Hut 8 published its results for the Fiscal year 2020. The company announced that it was on track to hit 1.3 exahashes per second of mining output by the second quarter of fiscal 2021, after reaching 1.0 EH / s in January.

The global strength of our company and our mining activities has enabled us, despite a difficult year for bitcoin miners across the industry, to keep the highest amount of self-mined bitcoin on the balance sheet of any listed company in the world

said Jaime Leverton, Hat 8 CEO at the presentation of the balance sheet.

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Other cryptocurrencies are also interesting for Hut 8

Hut 8 has meanwhile also put out its feelers for other crypto currencies than Bitcoin. The competitor Riot Blockchain is also upgrading. It has expanded its stock of computers and thus its mining capacity with a new purchase order for 42,000 S19j Antminers from Bitmain. The $ 138.5 million order is part of a coordinated growth plan. The goal, of course, is to significantly increase Riot’s Bitcoin (BTC) mining hash rate. As a result of current and previous orders, Riot said it should receive at least 3,500 S19j Antminers per month from November through October 2022.

The share price of Riot Blockchain has risen even more significantly in the past few months than that of Hut 8. While the price was less than USD 4 at the beginning of November, it reached a new all-time high of USD 79.50 in mid-February. Yesterday the closing price was USD 48.37.

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