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Miners Hive Blockchain Technologies, Hut 8 Prep for Ethereum Merge

  • New coin miners like Hive are likely considering mining ETC and ETHPoW, says head of research at Valkyrie Investments
  • Hut 8 Mining ready to spin up 180 Ether-mining GPUs to focus on AI, machine learning, and VFX rendering

Hive Blockchain Technologies is developing ways to optimize its Ethereum mining capabilities as blockchain’s transition from proof-of-work to proof-of-stake is rapidly approaching.

The Vancouver-based company is looking to optimize its 6.5 terahashes of Ethereum mining capacity as the transition is about to unfold, he revealed on Tuesday. Hive has begun analyzing mining other coins with its fleet of graphics processing units (GPUs) and is implementing beta testing this week.

The company did not immediately return a request for comment.

Josh Olszewicz, head of research at crypto fund manager Valkyrie Investments, told Blockworks that miners are likely considering switching to Ethereum Classic (ETC), ETHPoW or other proof-of-work chains.

“EtHash [application-specific integrated circuits] (ASIC) miners started switching to ETC because it is better to make less profit than none at all,” he said. “GPU miners, not being able to compete favorably with ASIC miners, will likely move to the ETHPoW fork, when that happens.”

However, GPU miners have increased flexibility on what they can mine compared to ASIC miners, Olszewicz said.

Hive’s roughly 38,000 Nvidia GPU cards, including the A4000, A5000, A6000, and A40 models, account for around 2.8 terahashes of the company’s Ethereum hashrate.

“These maps can be used for cloud computing and AI applications, and rendering for engineering applications, in addition to scientific modeling of fluid dynamics,” the company said in a statement.

Part of the A40 GPU cards are being applied to cloud computing under a pilot program at one of its data centers, the crypto miner added.

Hive Blockchain Technologies mined 821 bitcoins and 7,675 ether during the second quarter of the year, the company announced last month. Its overall digital currency production grew 7% quarter over quarter, as it produced 4% more bitcoin and 20% more ether.

The company said it sold ether to fund the expansion of its bitcoin mining program with next-generation ASICs. Its ETH position fell from 25,000 ETH to 5,100 ETH as of August 31. The company held 3,258 BTC on that date.

Meanwhile, Hut 8 Mining said in a statement from the company on Tuesday that it installed 180 Nvidia GPUs in its BC data center last month.

Currently mining ether, the machines will be designed to rotate to offer artificial intelligence, machine learning or visual effects rendering services to customers.

“We are monitoring the preparation for the Ethereum merger very closely and remain focused on growing our bitcoin stack while building high-performance computing infrastructure to support the future of the digital asset ecosystem,” said one. spokesperson for Hut 8 at Blockworks in an email.

Hut 8 generated 375 bitcoins in August and held 8,111 BTC on August 31.

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  • Ben Strack

    Ben Strack is a Denver-based journalist who covers macro and crypto-native funds, financial advisors, structured products, and the integration of digital assets and decentralized finance (DeFi) into traditional finance. Prior to joining Blockworks, he covered the asset management industry for Fund Intelligence and was a reporter and editor for various local Long Island newspapers. He graduated from the University of Maryland with a degree in journalism. Contact Ben by email at [email protected]