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  • Hut 8 Mining (HUT) co-founder, Andrew Kiguel, is stepping down from his role as CEO
  • Mr. Kiguel will remain as CEO and a board member until a successor is appointed
  • The company also announced amendments to its partnership with Bitfury Holding BV
  • Hut 8 shares are down 4.79 per cent to C$1.59, with a market cap of C$143.80 million

Hut 8 Mining (HUT) has announced that its co-founder, Andrew Kiguel, will step down from his role as CEO.

The Toronto-based company hosts 94 data centres in Drumheller and Medicine Hat, Alberta, representing 107 megawatts of operating capacity.

“As a co-founder, it’s been a privilege to help build Hut 8 from a start-up to a category-leading company that’s generated over C$115 million in revenue since 2018,” said Mr. Kiguel.

“Hut 8 survived the 2018 bitcoin price collapse and emerged the world’s largest publicly traded bitcoin miner.”

No information has been given as to the reason for Mr. Kiguel’s resignation, but the company has said that he will retain his position as CEO and a member of the Board until a successor is appointed.

Hut 8 has also announced a non-binding term sheet with its partner, Bitfury Holding BV, to amend key agreements with the intent of reducing operating costs and offering Hut 8 greater autonomy in its Canadian operations.

As per the agreement, the company will receive a reduction of up to C$2 million in annual fees paid to Bitfury and improved flexibility to work with alternative equipment vendors.

Subsequently, Bitfury will also have the opportunity to work with other bitcoin miners in North America.

Pursuant to these changes, Hut 8 intends to repay its unsecured debt obligation of to C$6,259,882.50 to Bitfury and refinance it with a C$6,589,350 bitcoin-collaterized credit facility with Genesis Global Capital, LLC.

The refinancing will be undertaken at a lower interest rate, saving Hut 8 a further C$134,587.47 annually.

“The amendment of these contracts will allow Hut 8 to operate more independently as the company continues to mature,” added Mr. Kiguel.

“Bitfury remains the largest Hut 8 shareholder and an important strategic partner.”

Shares in the company are down 4.79 per cent to C$1.59, with a market cap of C$143.80 million.

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