Hut 8 buys $30 million worth of NVIDA CMPs

Two months ago, NVIDIA rolled out its Cryptocurrency Mining Processors (CMPs). The company is trying to get more GeForce cards in the hands of gamers, an initiative that doesn't seem to be very successful, and aims to fulfill mining demand with the new CMPs.

NVIDIA expected CMPs would contribute about $15 million to its first-quarter revenue -- making it a relatively small niche for the company. It's believed NVIDIA indirectly sold $100 million to $300 million worth of GPUs to miners in Q4 2020. There are no exact figures as most GeForce cards are sold by NVIDIA's partners -- and NVIDIA doesn't have a lot of visibility on who these cards are sold to.

Now we hear a single client has already placed an order for $30 million of NVIDIA CMPs! Hut 8 Mining Corp is a stock market-listed crypto mining company based in Toronto, Canada. Last week, the company send out a press release to inform investors about the purchase of these cards.

Hut 8 expects initial deliveries in May 2021 and aims at full deployment this summer. There are no details about which NVIDIA CMPs got bought by Hut 8 but the company indicates the purchase will result in about 1600 Gigahash of extra mining capacity. WCCF Tech notes this equivalent to about 13,333 GeForce RTX 3090 video cards.

Hut 8 Mining Corp. (TSX: HUT) (“Hut 8”) has executed on a purchase of $30 million USD of NVIDIA CMPs, which will be delivered starting in May 2021, with full deployment expected to be completed this summer.

The addition of the NVIDIA CMPs is set to dramatically increase Hut 8’s aggregate operating rate by approximately 1600 Gigahash. Hut 8 will use the NVIDIA CMPs to mine alternative blockchain networks and expand its mining business while maintaining the benefit of payouts in Bitcoin.

With this bold move, Hut 8 now has the opportunity to pursue additional computationally intensive applications in the high-performance computing space. This transaction serves to strengthen Hut 8’s initiative to increase revenue diversification and drive immediate short- and long-term revenue growth objectives forward in FY 2021.

“The adoption and the development of applications interacting with various blockchain networks have never been stronger, opening many possibilities across a variety of industries,” said Jaime Leverton, CEO of Hut 8. “We are incredibly excited to have these high performance CMPs in our fleet. We believe mining with CMPs will open up new opportunities for Hut 8 and will allow us to continue to execute on our long- and short-term plans for increased and diversified revenue streams.”