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Companies

Canadian cryptocurrency mine Hut 8 downsizes even more as second round of layoffs hits

April 5, 2019, 12:00PM EDT

Canadian cryptocurrency mine Hut 8, which operates 85 data centres in Drumheller and Medicine Hat, has laid off more workers, CBC reports. Hut 8’s partner is Bitfury. The company does not reveal the extent of the downsizing, claiming layoffs in January and the current round can be attributed to streamlining processes. 

According to an anonymous worker that was laid off by Bitfury in January, “probably half of the data centre ops crews were let go" in Drumheller in the first mass layoffs.

Even though bitcoin’s price has jumped this week, mining is still not nearly as profitable as it had been before the price drop. CBC writes Hut 8 reported approximately 51 per cent mining profit margin in its third quarter. The profit was impacted by high electricity prices and increased competition in the mining industry.