Here's Why Hut 8 Mining Is Plunging Today

Hut 8 Mining (NASDAQ: HUT) is down 16.2% on heavy volume to $8.69 per share as of 11:10 a.m. EDT today. Yesterday, the company announced it would be selling 17.55 million units of stock at $8.55 apiece to raise a total of $150 million in proceeds. That's a pretty hefty dilution, as Hut 8 Mining only has a market cap of about $1.5 billion.

The company has been pretty successful at what it's doing. Currently, it mines about 10.5 Bitcoin per day and has a total hash rate of 1.37 exahash per second, which is about 1% of the entire network's power. During the second quarter of 2021, Hut 8 Mining brought in $33.55 million Canadian dollars ($26.51 million) in total revenue and CA$19.14 million in mining profit. Both are significant increases over the CA$9.23 million in revenue and CA$0.7 million in mining profit it generated in Q2 2020.

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Source Fool.com