• Hut 8 CEO Jaime Leverton explains how Bitcoin mining can stabilize grids, create jobs and generate tax revenues in an exclusive Davos interview.
• 2022 was “the perfect storm” for Bitcoin miners, according to Leverton, with depressed Bitcoin prices, global hash rate continuing to hit all-time highs and an energy crisis to boot.
• Leverton explained that a diversified strategy coupled with a successful mergers-and-acquisitions plan helped stave off insolvency risks for Hut 8.
At the World Economic Forum in Davos, Switzerland, Jaime Leverton, CEO of Hut 8 Mining, one of the largest crypto miners and digital asset experts in the space, sat down with Gareth Jenkinson, senior reporter at Cointelegraph in an exclusive interview. Leverton discussed how Bitcoin mining can stabilize grids, create jobs and generate tax revenues, as well as the tumultuous year that 2022 has been for miners.
Leverton began by noting how 2022 has been a challenging year for miners. With depressed Bitcoin prices, global hash rate continuing to reach all-time highs, and an energy crisis thrown in the mix, miners have had a difficult time staying afloat. 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 despite the low value of Bitcoin, leading to plunging mining profitability and multiple miner casualties throughout 2022.
In order to remain competitive, Leverton shared that Hut 8 had to employ a diversified strategy, with a particular emphasis on mergers and acquisitions. Through leveraging this strategy, Hut 8 was able to stave off insolvency risks and continue to be a major force in the mining industry. The company also recently spun up a “Bitcoin and mining repair fund” to help those miners that were adversely affected by the 2022 bear market.
Leverton went on to explain how Bitcoin mining can stabilize grids, create jobs, and generate tax revenues. He noted that miners often use renewable energy sources for their operations, making them uniquely positioned to help stabilize grids. Additionally, miners also create a number of jobs, both directly and indirectly, in the communities that they are based in. Finally, miners are often subject to taxation, meaning that they can generate a substantial amount of tax revenues for the governments where they operate.
Overall, Leverton’s interview provided a wealth of insight into the important role that Bitcoin mining can play in the global economy. His comments showcase how miners can have a positive impact on both the environment and the economy at large, and how the industry can be beneficial to all stakeholders involved.