Hut 8 Purchases $30M Worth of Nvidia's GPU Miners, Looks to Push Capacity to 1,600 Gigahash

legcramp

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Hut 8 Purchases $30M Worth of Nvidia's GPU Miners, Looks to Push Capacity to 1,600 Gigahash​

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On Friday, the publicly listed firm Hut 8 announced the purchase of $30 million worth of Nvidia’s dedicated crypto mining GPUs called the Cryptocurrency Mining Processor (CMP). Nvidia CMPs mine the crypto asset ethereum and Hut 8 expects its aggregate operational power will be 1,600 gigahash.

Hut 8 Purchases $30 Million Worth of Nvidia’s Dedicated GPU Miners​

On the heels of joining Foundry’s U.S. bitcoin mining pool, the firm Hut 8 Mining (TSX: HUT) revealed it has purchased $30 million worth of Nvidia CMPs. The Nvidia CMP HX product is described as a “dedicated GPU for professional mining.”

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Nvidia’s web portal also details that the miner supports mining on the Ethereum (ETH) network and claims to be optimized for high performance. Nvidia CMPs offer four different versions which include the 30HX, 40HX, 50HX, and 90HX. The top Nvidia CMP claims to obtain 86 MH/s while the low-end version does around 26 MH/s.

Hut 8 details that with the purchase of the new Nvidia CMPs, the company will get “approximately 1,600 gigahash” and miner alternative blockchains. The firm aims to expand its mining business while “maintaining the benefit of payouts in bitcoin.”


Hut 8’s Bold Moves​

The CEO of Hut 8, Jaime Leverton, said that the company looks forward to adding the new CMPs to the fleet. The Hut 8 executive hopes the purchase will allow the mining operation to continue “long- and short-term plans for increased and diversified revenue streams.”

“The adoption and the development of applications interacting with various blockchain networks have never been stronger, opening many possibilities across a variety of industries,” Leverton said.

Hut 8 refers to the purchase as a “bold move” as the company has invested in a great number of bitcoin miners in recent times. In June 2020 the company announced the acquisition of 275PH/s of mining capacity.

The following month it was revealed that the fund manager Fidelity International holds a stake in Hut 8. However, before the crypto bull run took off, in August the Canadian miner reported that second-quarter revenue dropped in comparison to the year prior.


https://news.bitcoin.com/hut-8-purc...ners-looks-to-push-capacity-to-1600-gigahash/
 

Lakados

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Except for electricity consumption and the planet but ok. Also more miners == more frenzy == more sheeple buying into this junk.
They are going to be buying this crap regardless, at least the CMP cards are trying to find a balance between electrical usage, heat generation, and output, all while doing it on a process node that doesn't conflict with the gaming lineup. While it's making money and people are buying into it, might as well do what you can to limit the damage they do, and if you can make a buck or 5 while doing so then who's really the winner here.
 
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They are going to be buying this crap regardless, at least the CMP cards are trying to find a balance between electrical usage, heat generation, and output, all while doing it on a process node that doesn't conflict with the gaming lineup. While it's making money and people are buying into it, might as well do what you can to limit the damage they do, and if you can make a buck or 5 while doing so then who's really the winner here.
Oh yeah not going to argue that at all.
 

Joust

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1,600 gigahash.

Man, it makes my (former) operation look like a joke.
 

Nafensoriel

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Whats with the "green mining" crap anyway?
I dont get the "oh we just offset it" shtick thats becoming a norm lately. I dont care what side of the debate people are on the entire mentality that you can just "do something else" while doing a thing to pretend you arent doing it is just wrong.

The CMP thing is funny though. Asic was supposed to end GPU mining. Now Asic and CMP is supposed to end gpu... Bahahha I cant finish that sentence there is no reality in these peoples heads.
 

cybereality

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If my calculation is right, that would be $56 million dollars worth of ETH in a year (not considering price fluctuation).
 

Nafensoriel

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man you must really love the military industrial complex then
The saddest thing about hate against the MIC is that so many absolutely life saving inventions came from it.
Oh sure its corrupt as hell and you can just "lose" a few billion in seconds but the reality is our quality of life has improved because of this group of organizations. At least from the WW1/2 era iterations.

Also as an old man. I have to admit I have yelled at clouds. How dare they show up on the day I want to sit in the garden with a beer.
 

jfreund

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If $30mil gets 1600 GH/sec with 90HX cards at 86MH/s, that puts the price of the 90HX around $1600 for about 18,600 cards.

If they could have purchased 18,000 RTX 3080s, I bet they would have.
 
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rinaldo00

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They are going to be buying this crap regardless, at least the CMP cards are trying to find a balance between electrical usage, heat generation, and output, all while doing it on a process node that doesn't conflict with the gaming lineup. While it's making money and people are buying into it, might as well do what you can to limit the damage they do, and if you can make a buck or 5 while doing so then who's really the winner here.
Waffers are Waffers. There is only so much raw materials, auxiliary parts, human work hours, etc. that are used in GPU manufacturing so it does conflict/compete with the gaming lineup.
 
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Lakados

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Waffers are Waffers. There is only so much raw materials that are used in GPU manufacturing so it does conflict/compete with the gaming lineup.
Maybe but Samsung has enough to do 14nm and 8nm at full capacity, what they don't have the ability to do is double their 8nm capacity.
 

rinaldo00

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Maybe but Samsung has enough to do 14nm and 8nm at full capacity, what they don't have the ability to do is double their 8nm capacity.
There are multiple reasons for the GPU shortage, do we know for certain that their 8nm capacity is at 100%? If the CMP series truly does not impact the gaming GPU supply that is great, but if it does I question the priorities.
 

Lakados

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There are multiple reasons for the GPU shortage, do we know for certain that their 8nm capacity is at 100%? If the CMP series truly does not impact the gaming GPU supply that is great, but if it does I question the priorities.
based on overall sales data from both NVidia and Samsung the 8nm is churning out parts as fast as ever, to the point where Samsung has issued concerns that they don't have time to perform maintenance at the pace they are running.
 

Nafensoriel

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There are multiple reasons for the GPU shortage, do we know for certain that their 8nm capacity is at 100%? If the CMP series truly does not impact the gaming GPU supply that is great, but if it does I question the priorities.
No fab likes to run at 100%. They shoot for 80ish so they can have downtime for maint.
I highly doubt they'll run at 100% even if they have the capacity to do so. It just invites risk and they have no real competition to validate that risk.
 

sunruh

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i have a very good friend at Samsung here in austin. the week long power outage due to ercot really set them for a loop.
and i dont think this plant even does 8nm
 

Nafensoriel

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i have a very good friend at Samsung here in austin. the week long power outage due to ercot really set them for a loop.
and i dont think this plant even does 8nm
Just because most people probably never thought about it this is pretty expected and normal for the majority of industrial processes.
Most plants will have issues for days after even a simple power upset. The mechanics of it are fairly basic. Whenever you have an upset to the power(or feed lines) the entire plant will not shut down at once. Microsecond variations can result in misalignments, breaks, jams, etc. Hell hydraulic shock can easily shatter things. "shutting down" one of these things takes engineers and time to do properly without issues.

All the "Safe shutdown" crap goes out the window when the angry pixies decide to go on a hooligan rampage during a sudden outage.
 

sunruh

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Just because most people probably never thought about it this is pretty expected and normal for the majority of industrial processes.
Most plants will have issues for days after even a simple power upset. The mechanics of it are fairly basic. Whenever you have an upset to the power(or feed lines) the entire plant will not shut down at once. Microsecond variations can result in misalignments, breaks, jams, etc. Hell hydraulic shock can easily shatter things. "shutting down" one of these things takes engineers and time to do properly without issues.

All the "Safe shutdown" crap goes out the window when the angry pixies decide to go on a hooligan rampage during a sudden outage.

they were given 90min to shutdown ...
considering that some devices use chemicals that are VERY/EXTREMELY hazardous and have to be contained/vented in certain ways i was told it was a mad scramble. lots of wafers ruined because they were stuck/locked in machines and so forth as you can imagine.
its not merely a ... pack up we are done and out in 10min
i dont know what happened at Applied Materials...but i can guess it was similar. and the same for Global Founderies.
 
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sharknice

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Except for electricity consumption and the planet but ok. Also more miners == more frenzy == more sheeple buying into this junk.

Once people actually use cryptocurrency for everything instead of government controlled currency the extreme amount of government inefficiencies removed from the process will more than offset the electricity consumption.
 

Red Falcon

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Once people actually use cryptocurrency for everything instead of government controlled currency the extreme amount of government inefficiencies removed from the process will more than offset the electricity consumption.
Oh please, it will still be government controlled.
 

DPI

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Except for electricity consumption and the planet but ok. Also more miners == more frenzy == more sheeple buying into this junk.

Anyone legitimately concerned with electrical consumption and the stripping of planetary resources should welcome digital currency over Fiat then. Deforestation and billions of gallons of water per year continually replacing paper money, and 100+ terrawatts per year running the existing banking system.

The circulating supply of coins and bills is $1.87 trillion dollars in the US. Money is not always purely digital and needs to be printed, which means that it has a life cycle: some bills and coins wear out and need to be reproduced. A $10 bill has an estimated life span of 5.3 years and a $5 bill is estimated to last for 4.7 years. To reproduce these bills and coins, you need a lot of natural resources as well (water, ink, pulp, cotton, linen and different kinds of metals).

The estimated global production costs of paper currency in 2014 were 5 terawatts per year and 10 billion liters of water. While the banking system alone is even consuming more energy than the Bitcoin network, bankings energy costs are calculated around 100 terawatts per year. This is almost double that of Bitcoin. Indeed, banks need to run a lot of servers, branches and ATMs to keep their system accessible to the public.
 
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Anyone legitimately concerned with electrical consumption and the stripping of planetary resources should welcome digital currency over Fiat then. Deforestation and billions of gallons of water per year continually replacing paper money, and 100+ terrawatts per year running the existing banking system.
Yeah but what happens as the difficulty keeps increasing exponentially and the world needs more coins?
Just keep creating and inflating more arbitrary alt-coins?
 

capnstabn

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The saddest thing about hate against the MIC is that so many absolutely life saving inventions came from it.
Oh sure its corrupt as hell and you can just "lose" a few billion in seconds but the reality is our quality of life has improved because of this group of organizations. At least from the WW1/2 era iterations.

Also as an old man. I have to admit I have yelled at clouds. How dare they show up on the day I want to sit in the garden with a beer.
For real man f&#$ clouds. Long hard week and I wanna golf, clouds. Long hard week and I wanna crawfish/beer, more clouds.
 

sfsuphysics

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Anyone legitimately concerned with electrical consumption and the stripping of planetary resources should welcome digital currency over Fiat then. Deforestation and billions of gallons of water per year continually replacing paper money, and 100+ terrawatts per year running the existing banking system.

This is an interesting argument actually, unfortunately what you quoted doesn't leave me satisfied with result.

The estimated global production costs of paper currency in 2014 were 5 terawatts per year and 10 billion liters of water. While the banking system alone is even consuming more energy than the Bitcoin network, bankings energy costs are calculated around 100 terawatts per year. This is almost double that of Bitcoin. Indeed, banks need to run a lot of servers, branches and ATMs to keep their system accessible to the public.
First I'm going to assume those are terrwatt-hours, since that is energy and a power amount (terawatts) is very meaningless here. Before I go further, I saw this article from last month
Undisputed numbers are hard to come by because of the complex nature of the calculations. Back at the start of 2017, Bitcoin was using 6.6 terawatt-hours of power a year. In October 2020, that was up to 67 terawatt-hours. Now a few months later, it has nearly doubled to 121 terawatt-hours, the Cambridge researchers found, enough to run their entire university for nearly 700 years.
So seems Bitcoin uses more, and considering the price has gone up so has the power usage I'm sure, so who knows what it is today.

But whatever the actual amount isn't terribly important, what matters is what actually product of that usage, Now the very nature of bitcoin may make it difficult to actually do an apples to apples comparison, but some information I was able to google shows somewhere between 250k - 300k transactions per day, now I'm not sure what banking "system" we're talking about just credit cards? Which easily eclipses over 100M transactions per day, and if you're talking banking system as a whole that's over a billion per day, and just so we're keeping score most(?) of these transactions are digital in nature it's not like huge pallets of cash are being shipped from bank to bank anymore

So yeah, seems like something like Bitcoin is just inefficient is all hell compared to "the banking industry" for as much energy as they use, it really is a drop in the bucket compared to how wasteful crypto-mining is.

As for the water bit, water is a renewable resource it doesn't get "used up" in the same sense that energy is used up by having less coal or natural gas (Or atoms of uranium) by using electricity, sure you take fresh water and in some way "pollute it" as a use, but then that water goes back into the environment and is recycled again to make more fresh water (yes even the stuff that gets dumped into the oceans), and while yes this can cause drought by nature of you take water before it goes where it was supposed to go or divert it to the point where it can't get back to where it started (e.g. Aral Sea), animal agriculture in the US uses over 100 TRILLION gallons of water each year. If you're that worried about having money, you should probably stop eating that hamburger first.
 
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