Bitcoin News — Canada

Canadian Bitcoin Miner Hut 8 Reports Q3 Loss of $8.7 Million

Posted by Jeffrey Gogo on

Canadian Bitcoin Miner Hut 8 Reports Q3 Loss of $8.7 MillionHut 8 Mining Corp., a Canadian bitcoin mining company, has released its third quarter earnings report, which shows a net loss of US $8.7 million on higher depreciation costs. Depreciation spiked to $13.3 million, wiping out mining profit which came to $6.7 million. Also Read: Acquires Primus Capital Markets to Offer BTC-Backed Forex Trading  Revenue […]

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Canadian Bank Set to Launch Uncheckable ‘Deposit Box’ for Cryptocurrency

Posted by William Suberg on

A subsidiary of Canadian bank VersaBank has completed beta testing of its new solution, which targets exchanges and crypto funds as clients.

A subsidiary of Canadian financial institution VersaBank confirmed it had finished beta testing of a “digital vault” for storing cryptocurrency in a press release Nov. 8.

VersaVault, which announced its so-called “digital safety deposit box” in February, is aiming to attract crypto exchanges and funds as clients for the new tool.

The product provides cryptocurrency storage on servers dotted throughout the world, the deposit box element lying in the fact the bank itself can neither brute force the digital ‘boxes’ nor know their contents.

“While many are considering ideas and plans for a digital safety deposit box, we have designed and built it, and are now commercializing a first of its kind service,” David Taylor, president and CEO of VersaBank and VersaVault commented in the press release, adding:

“...The VersaVault will now begin rolling out services to cryptocurrency exchanges and crypto investment funds.”

The move takes the relatively unknown VersaBank along the same trajectory as several players in Europe.

As Cointelegraph reported, Lichtenstein’s Bank Frick released cold storage of cryptocurrency funds as part of its in-house offer earlier this year, while fellow institution Union Bank announced a pivot to become fully focused on cryptocurrency and blockchain in August.

The heavyweights of cryptocurrency storage still reside within the industry itself, institutions making use of services such as Xapo’s physical storage in Swiss vaults.

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Canadian Bank Opens Deposit Box for Cryptocurrency Firms

Posted by Zack Seward on

VersaBank says its VersaVault offers "absolute privacy" when announcing that crypto exchanges and funds can sign up to use the platform on Thursday.

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Canada’s DMG Blockchain Puts 85 Megawatt Crypto Mining Facility Into Operation

Posted by Ana Alexandre on

Canada-based blockchain and crypto company DMG Blockchain Solutions has energized most of its 85 megawatt crypto mining facility in British Columbia.

Canadian blockchain and cryptocurrency company DMG Blockchain Solutions Inc. has energized its new crypto mining facility, according to an announcement published Nov. 8. DMG states that the facility will start at 60 megawatts, and can expand its capacity up to 85 megawatts.

DMG Blockchain Solutions initially revealed its plans to launch the station in July, stating that  their crypto mining operation will be implemented on an industrial scale with direct support from the local government and electricity providers. The station will purportedly increase DMG’s hosting capability by more than 20 times.

Per the recent statement, the 27,000 square foot crypto mining-as-a-service (MaaS) operation occupies an area of 34 acres and is one of the biggest such operations in North America. Since the facility uses hydroelectric power — of which there is a surplus in Canada — the operation will reportedly not affect power needs of local residents.

Independence from the local community grid is crucial for the project’s success, as DMG’s new 85 megawatt facility requires the same amount of electricity needed to power 50,000 homes. Dave Evdokimoff, CEO of local electrical products and services company Boundary Electric, said that “in Boundary Electric’s 71 years of business, we have never seen a demand in the electrical manufacturing industry quite like what is being generated from the crypto space.”

Due to an abundance of hydroelectricity and low power costs, Canada has become an attractve location for cryptocurrency mining. In June, major Canadian electricity provider Hydro-Québec proposed new rules, under which blockchain companies will be required to bid for electricity and quantify the jobs and investment they expect to generate per megawatt.

With that move, Hydro-Québec seeks to allocate up to 500 megawatts, in addition to 120 megawatts of already existing initiatives. The power supplier purportedly received requests to purchase power from more than 100 organizations with a total energy consumption exceeding 10 terawatt hours.

The U.S. state of New York is also flush with hydropower, as earlier this summer state regulators approved a new electricity rate scheme for crypto miners that will allow them to negotiate contracts. The Massena municipal utility will consider contracts on a case-by-case basis, which will protect other utility customers from increased rates.

Residential consumers in Massena pay an energy charge of about $0.039 per kilowatt hour, where the national average residential rate is $0.13 per kilowatt hour. This made the state a destination for crypto miners, who use powerful specialized computers for the energy-intensive activity.

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Canadian Bitcoin Mining Firm Hut 8 Sees Record High Revenue in Q3 2018

Posted by Ana Alexandre on

Toronto-based Bitcoin mining company Hut 8 has seen record high revenue in the third quarter of 2018, which reached $13.5 million, with $27.7 for the nine months ending on Sep. 30.

Canadian Bitcoin (BTC) mining company Hut 8 has reported record revenue in the third quarter (Q3) of 2018, according to the company’s quarterly financial report published Nov. 8.

Hut 8, which claims to be “the largest” public crypto mining company by operating capacity and market capitalization, has revealed its financial results for Q3 of this year, stating that its revenue reached a record high $13.5 million for Q3, and $27.7 million for the nine months ending on Sep. 30.

Revenue increased by 126 percent compared to the previous quarter revenue of $5.9 million. Hut 8 attributed the increase to its deployment of 16 Bitfury BlockBoxes in September at its mining facility in the City of Medicine Hat, for an aggregate of 56 BlockBoxes at that site. Each BlockBox contains 176 mining servers and reportedly has a hashrate of 13.7 Pethashes per second (Ph/s).

In Q3, Hut 8’s cost for mining a single Bitcoin was $3,394, which is lower than the current market price of around $6,400, which is reflected in the report as the company’s mining profit for Q3 was $6.6 million, with a mining profit margin of 51 percent. Hut 8 claims that this makes it one of the lowest-cost BTC mining companies globally.

Hut 8’s mining profit margin and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) was lower during Q3 for a few reasons. The BTC price significantly appreciated through the quarter, while competition from other BTC miners increased. Another factor was the record high temperatures in Alberta, which resulted in increased electricity costs at Hut 8’s Drumheller facility.

The company expects that the efficiency of Application-Specific Integrated Circuit (ASIC) chips used to mine cryptocurrencies will rise during the colder months, which subsequently will improve performance in the next quarter.

Hut 8 launched its Medicine Hat facility in July in partnership with BTC mining equipment manufacturer BitFury. At that time, Hut 8 had mined around 1,000 BTC since its launch in December of last year.

Meanwhile, BTCC Pool, the mining operation of Hong Kong-based cryptocurrency exchange BTCC, announced it will close “indefinitely” at the end of November due to unknown “business adjustments.” BTCC nonetheless expressed a sense of optimism, hinting that the decision to close down was not strictly permanent.

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