Hut 8 Mining Encounters Hurdles: Power Shortages and Equipment Failures Slow Down Crypto Operations

Hut 8 Mining, a Toronto-based company, is facing unexpected delays. Repairs to their damaged equipment are not progressing as planned. The site in Drumheller, Alberta is the hotspot of these issues, according to the Coindesk.

Power shortages and equipment failures are the primary causes of the delay. Frequent power curtailments and hardware failures due to power surges have hindered progress. As a result, hashboards are breaking down faster than they can be repaired.

This situation has significantly impacted the company’s hashrate and bitcoin production. While some hashboards get fixed, others fail, creating a cycle of constant repair. This hampers the miner’s ability to produce bitcoin.

Last month, Hut 8 shared that their site was operating at just 15% of its installed hashrate. They predicted a restoration period of 10-12 weeks. Now, they confirm this timeline will not be met. However, they have yet to provide a new estimate.

Interestingly, Hut 8’s shares still managed to rise by 3% in pre-market trading on Nasdaq. Despite the ongoing issues, investors appear to retain confidence in the company.

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