Crypto miner explains how Bitcoin mining stabilizes grids

2022 was “the perfect storm” for Bitcoin (BTC) miners, according to Jaime Leverton, CEO of Hut8 mining, one of the largest crypto miners and digital asset experts in the space. 

Leverton sat down with Gareth Jenkinson, senior reporter at Cointelegraph, in an interview at the World Economic Forum in Davos, Switzerland. Topics included were the 2022 bear market, Web3 diversification and, crucially, Bitcoin’s growing positive impact on the environment and broader economy. Leverton shared that 2022 was a turbulent year for miners:

“Obviously depressed Bitcoin prices, global hashrate continues to hit all-time highs and then an energy crisis is thrown in the mix. So it’s certainly been a challenging time within the mining industry in particular.”

Bitcoin hash rate, the ease at which miners can find a new block on the Bitcoin time chain and receive the block reward, has climbed higher in recent months. That’s despite the Bitcoin price bobbing below $20,000. Mining profitability plunged as the hash difficulty surged. As a result, there were several Bitcoin and crypto miner casualties throughout 2022.

Leverton explained that a diversified strategy coupled with a successful M&A plan helped stave off insolvency risks for Hut 8, one of the world’s largest publicly traded Bitcoin and crypto mining companies.

The group recently spun up a “Bitcoin and mining repair facility for customers in across Canada and Northern Europe.” Meanwhile, a merger led to the purchase of “five enterprise-grade data centers and the associated business.” Leverton highlighted that this move attempts to fill a gap in the market for digital infrastructure providers in the Web3 space:

“They tend to be really dependent on the traditional Web two hyperscalers as they, as they try to build out these decentralized platforms. And obviously, when you’re building a decentralized network, you don’t want to do that in, in centralized infrastructure.”

Web3, once a buzzword in the crypto space, has since become a hotly-tipped trend for 2023, attracting 10-figure-plus investments from Hong Kong to Abu Dhabi. The entrance of Hut 8 into Web3 could usher more Bitcoin-only companies to consider opportunities in the Web3 space.

The interview concluded with an astute…