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Why is Hut 8 Mining Corp. (HUT) stock declining in intraday trading?

Shares of the Hut 8 Mining Corp. (HUT) were declining in the intraday trading today on September 20, 2021. HUT stock price saw a downtrend of 7.42% to drop at $8.23 a share at the time of this writing. As of now, the trading volume was 1,902,166. Hut 8 mining on Friday, September 17, 2021, announced the closing of a $173 million common share public offering.

Hut 8 Mining Corp. is the cryptocurrency mining stock operating in North America. It is mining bitcoin and also owns 8 BlockBoxes in Drumheller, Alberta; and 56 BlockBoxes in Medicine Hat, Alberta. Its headquarters are located in Toronto, Canada.

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Public Offering by HUT stock:

Hut 8 Mining Corp on September 17, 2021, did announce the closing of an underwritten public offering of common shares. HUT stock offered 20,182,500 common shares in connection with this offering. It also includes the underwriter’s option o purchase 2,632,500 additional common shares. The stock offered shares at the price of US$8.55 per share. This resulted in the US$172,560,375 gross proceeds.

HUT 8 Mining is anticipating using the net proceeds for the growth of its business. The stock will specify the potion of proceeds to fund capital investments in mining machines. A portion of the proceeds will be used in working capital and general corporate purposes along with strategic partnerships, joint ventures, or acquisitions.

Previous Development of HUT stock:

On September 14, 2021, HUT stock did announce the execution of a Repair Services Ag with MicroBT. This is the major achievement of a strategic milestone with HUT’s relationship with MicroBT. According to this agreement, HUT stock is eligible to complete in-warranty work on MicroBT miners on-site in Medicine Hat, Alberta. This arrangement will provide financial benefits to both partners and their relationship will grow more.

HUT stock Mining Production for August 2021:

Hut mined 326 Bitcoin with an average production of 10.5 Bitcoin per day.
Deposited 100% self-mind Bitcoin into custody aligned with Hut 8’s “hodl” strategy
By the end of August, the Total Bitcoin balance was 4,450.
HUT received and performed installation of 1,025 net new MicroBT machines, resulted in the addition of 92 PH/s to the production rate.

Wrap Up:

Things are not favorable for HUT 8 Mining as far as market sentiment is concerned. However, the performance in 2021 is quite satisfactory as it gained almost 170% year to date.