- The stock price of Hut 8 Mining Corp. (NASDAQ: HUT) increased by over 15% pre-market. This is why it happened.
The stock price of Hut 8 Mining Corp. (NASDAQ: HUT) increased by over 15% pre-market. There is no company-specific news driving the stock price up so it appears there are external factors at play.
Investors in stock trading platforms are citing the momentum in cryptocurrencies as being the driving force for the stock price increase. The price of the Bitcoin cryptocurrency is up more than 9% over the past week. And Ethereum is up more than 12% over the past week.
Last week, Hut 8 Mining revealed its mining production highlights for July 2021:
— 300 Bitcoin mined, resulting in average production of 9.7 Bitcoin per day
— 100% of self-mined Bitcoin were deposited into custody as at July 31, consistent with Hut 8’s ongoing commitment to holding Bitcoin in reserve
— Total Bitcoin balance held in reserve: 4,123 as of July 31, 2021
— Received and installed 920 net new machines, adding 73 PH/s to production rate
This sharp decline in global hash rate stemming from the ongoing prohibition on cryptocurrency mining in China. And the resultant downward Bitcoin network difficulty adjustments has resulted in Hut 8 producing significantly higher quantities of Bitcoin at a lower cost per Bitcoin produced. The average production for Hut 8 increased by about 50%, from 6 – 6.5 Bitcoin per day in late June 2021, to approximately 9.5 – 10 Bitcoin per day in late July 2021.
Based on current mining conditions and installed hash rate, Hut 8 is projecting to mine approximately 910 Bitcoin in the third quarter of 2021, which would bring the company’s self-mined Bitcoin balance to approximately 4,733 as of September 30, 2021.
Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.