Hut 8 (HUT) has bought $30 million of Nvidia’s new crypto mining-specific graphics processing items (GPU) to assist the corporate broaden into mining for different cryptocurrencies in addition to bitcoin.
Called a Cryptocurrency Mining Processor (CMP), the brand new GPU was launched earlier this 12 months to focus on skilled cryptocurrency miners. Nvidia launched the GPU, partially, to steer these miners away from its different GPUs following complaints by the corporate’s core gaming clients pissed off by shortages brought on by miner demand.
In the corporate’s This autumn earnings name, Nvidia CFO Colette Kress stated she anticipated about $50 million in complete CMP gross sales throughout the brand new product’s first quarter this 12 months, per CoinDesk’s prior reporting. Hut 8 crammed 60% of that focus on in a single order.
The machines “open up new alternatives” for Hut 8’s plans for diversified income streams, stated CEO Jamie Leverton in a press release. The new CMPs will add roughly 1,600 GH of energy to the agency’s mining capability, which it’s going to use to mine alternate blockchains. Hut 8 expects full supply and deployment of the CMPs this summer time.
Allocating mining capability to alternate blockchains like Ethereum “has been rewarded handsomely by public market traders as seen by the inventory worth of Hive in comparison with [its] Canadian-traded counterparts who’ve centered on Bitcoin to this point,” stated Ethan Vera, co-founder of Seattle-based mining firm Luxor Technology, in a direct message with CoinDesk. Now Hut 8 desires some of the revenue.
Shares of the Toronto-based firm have gained 130% 12 months to this point to only above $7. Bitcoin has climbed 77% over the identical interval.
UPDATE (April 1, 2021, 20:35 UTC): Corrects that Colette Kress is Nvidia’s CFO, not CEO.