In May 2023, Hut 8 Mining, a crypto miner based in Toronto, Canada, and one of North America’s largest publicly traded mining firms, mined 147 bitcoin (BTC). This news comes when the Bitcoin hash rate is falling.
Hut 8 Mining mined 147 bitcoin in May
In a recent report, the crypto miner and Bitcoin infrastructure provider said the 147 BTC mined translated to around 4.7 BTC mined every day.
While they received 147 BTC as block rewards and transaction fees on each of the bitcoin transaction blocks they mined, Hut 8 Mining sold 179 BTC, receiving $6.8 million in revenue. The BTC sold in May represented a small portion of their total reserves which amounted to 9,233 by the end of last month.
Bitcoin is the world’s largest cryptocurrency by market capitalization. With more projects shifting to a proof-of-stake consensus algorithm, the Bitcoin network depends on miners since it uses a proof-of-work consensus system to approve transactions.
In this arrangement, miners operating gear, such as Bitmain Antminer S19 Pro or Whatsminer M30S++, compete to confirm a transaction block and add it to the Bitcoin network. For their effort, the successful miners, often with the highest hash rate, receives 6.25 BTC and transaction fees associated with that block.
Block rewards are dispensed from the protocol level, and in the current epoch, it stands at 6.25 BTC. However, the amount will be reduced over time. In 2024, rewards will be slashed by half to 3.125 BTC. Meanwhile, fees vary depending on the tag transaction fee placed by the sender in every block. Since transactions amount varies, total accumulated fees in that block also differ.
Bitcoin hash rate drops from 424 EH/s
As of June 11, trackers show that the total hash rate in the Bitcoin network stood at 390 EH/s, down 424 EH/s in the last hour.
The hash rate is the total computing power channeled to the Bitcoin network. This figure determines the security of the network. Miners or pools with the highest hash rate tend to stand a higher chance of mining BTC.
From their May report, Hut 8 Mining said their total hash rate stood at 2.6 EH/s, representing a 0.67% share of the network’s hash rate. Out of this, and based on their total reserves, Hut 8 Mining productivity translated to 56.54 BTC/EH in May.
Hut 8 Mining plans to add even more hash rate. However, their efforts have been slowed by failing gear requiring more repair time.