The cards will allow HUT 8 to mine cryptocurrencies on alternative blockchain networks. Thanks to the purchase, NVIDIA achieves revenue that estimates more than 60%.
HUT 8, one of the largest and oldest mining companies in bitcoin mining, announced on Friday, March 26, the acquisition of NVIDIA CMP (Crypto Mining Processor) graphics cards. With this acquisition, the company intends to skyrocket its hash rate of 1,600 GH / s and venture into Ethereum cryptocurrency mining.
The HUT 8 announcement appeared through a press release, where the company confirmed the purchase of the new NVIDIA CMP graphics cards, launched in February this year, for USD 30 million. However, he did not specify how many they were or what models they are.
According to the statement, the cards, created especially to mine ether (ETH), will arrive at HUT 8 next May and be fully implemented this summer (July-August 2021).
The company, based in Canada, expects that with this acquisition, its mining capacity of 1,073 PH / s will add 1,600 GH / s. At the same time, it will use graphics cards to mine cryptocurrencies on alternative blockchain networks.
In this way, users will mine bitcoin, but they will also mine ethers and other cryptocurrencies from now on; all this, while maintaining your profits with the bitcoin business.
HUT 8 also expects, with this new acquisition, to have more chances to pursue high-performance computing applications that allow it to diversify revenues in its business and drive long and medium-term growth within the fiscal year 2021.
Regarding the acquisition of the cards and their uses within the company, Jaime Leverton, CEO of HUT 8, expressed the following:
“We are incredibly excited to have these high-performance CMPs in our fleet. We believe that mining with CMP will open up new opportunities for HUT 8 and allow us to continue executing our long-term and short-term plans to increase and diversify revenue streams.”
Likewise, NVIDIA obtains a revenue 60% above what it is traditional to earn with the NVIDIA CMP cards in this first quarter with this purchase.
Collette Kress, NVIDIA Chief Financial Officer, said:
“For the first quarter, we estimate that NVIDIA CMP graphics will bring in approximately $ 50 million in revenue. We plan to sell these products to minors. We will quantify your contribution each quarter for the sake of transparency.”
Collette Kress, NVIDIA Chief Financial Officer.
This recent investment is not the first time this year that this company does, because, at the beginning of the year, the company requested a loan of USD 12 million to buy 5,400 units of MicroBT miners, Whatsminer M30, thus increasing by 475 Additional PH / s bitcoin processing capacity.
By: Jenson Nuñez
