The last few days of 2022 were choppy for Bitcoin miners due to market volatility and the worst bear markets. Hut 8 CEO Jaime Leverton shared her views on the roller coaster ride the crypto market went on and its impact on Bitcoin mining performance at the earlier World Economic Forum’s (WEF) annual conference in Davos, Switzerland.
According to a February 21 report, Leverton shared her analysis on recent updates in the crypto market and the performance of Bitcoin mining during the difficult time. In 2022 Bitcoin mining firms experienced a continuous rise in energy costs, low BTC prices, and the worst weather conditions in North America.
She said, “I think the mining industry, in particular, has gone through some pretty big swings in the last two years. The year 2022 was really the perfect storm from a Bitcoin mining industry perspective.”
The CEO of Hut 8 reminded that the firm made an entry in 2018 and joined Nasdaq in 2022. She mentioned that due to the 2021 crypto bull run, there were huge inflows into the mining of crypto assets, which helped to increase its leverage. She continued that the industry has undergone a significant overhaul and that those who took on a lot of leverage suffered, which has caused the industry to consolidate and more companies to diversify their portfolios.
“The beautiful thing about Bitcoin mining- I was a founding member of the Bitcoin Mining Council, and we actually released our latest report earlier this week, which shows the energy use by the Bitcoin industry by the Bitcoin industry by the blockchain is 58.9% renewably sourced now and that continues to improve quarter over quarter.”
Leverton highlighted that Bitcoin miners have recently started working on waste methane, flare gas and landfills to generate green energy and cut carbon emissions. Recently Hut 8 collaborated with ERS International to reduce carbon emissions by reusing and recycling nearly 220 metric tons of e-waste, earning nearly 5,200 carbon credits.
Director of ESG at Hut 8 Arnold Lee said, “We chose to partner with ERS International because their innovative program allowed us to responsibly recycle obsolete miners while taking meaningful steps to achieve our carbon neutrality goals.”
In January 2023, most miners increased their BTC production due to stable electricity prices and better weather conditions. According to the Hahrate Index report, miners experienced steady growth in hash rate and Bitcoin production compared to the last month. Clean Spark, Core Scientific and Riot are the best performers in January, per the report.