Report: Crypto Miner Hut 8 Lays Off More Staff

Canadian Bitcoin (BTC) mining  firm Hut 8 has reportedly laid off employees at its facilities in the province of Alberta, the Canadian Broadcasting Corporation (CBC) reports April 4.

Hut 8’s crypto mining facilities in Drumheller and Medicine Hat are part of a joint venture with European crypto mining hardware firm Bitfury.  

A former employee at the Drumheller facility told the CBC that he was laid off along with two dozen colleagues in January. He reportedly stated that the company reduced its staff by around 25% globally at the time, while teams in Alberta have faced even bigger layoffs.

The cuts in staff reportedly come as a result of the 2018 bear market and increased electricity costs in the region. However, the staff reductions have purportedly exceeded expectations, with the layoffs reportedly accounting for half of the data center operations crews, the CBC says.

Founded in 2017, Toronto-based Hut 8 has reportedly mined 7,300 Bitcoin (BTC) to date.

Bitfury has not confirmed layoffs to CBC, declining to comment on the number of employees laid off this week, or in January. However, a Bitfury spokesperson stated that the layoffs were part of an effort to streamline operations.

Hut 8 reported a record revenue in Q3 2018, stating that its revenue was as high as $13.5 million, and $27.7 million for the nine months ending on Sep. 30, 2018. However, it also experienced a net operating loss of $8.3 million.

Recently, biotech company turned mining firm Riot Blockchain reported a 2018 net loss of about $58 million in its financial report.