HomeBitcoin MiningCanadian City on the Verge of Cutting Off Power to Bitcoin Mining...

Canadian City on the Verge of Cutting Off Power to Bitcoin Mining Farm


Concerns over the growing consumption of electricity from a Bitcoin mining farm might cause the city to cut off power supply to the venue, despite the financial boost for the local community.

Growing Concerns

Medicine Hat, Canada, is a city with around 60,000 people living in it. It’s also home to Hut 8 – $100 million Bitcoin mining farm which spreads over 4.5 hectares of land. The entire venue has 56 shipping containers in it and 180 mining servers.

It works around the clock and, reportedly, consumes more electricity than the entire city of Medicine Hat combined. The city is known for its resources of own natural gas as well as electricity generation and distribution, which is what supposedly attracted Hut 8 in the area in the first place.

Hut 8’s mining facility is located very close to the city’s natural gas-fired power plant and, according to the mayor, consumes over 60 megawatts of power, which is roughly 10 times more than any other facility in the city.

The substantial magnitude of the consumption has caused the city to place provisions in the event of a summer heat wave. Supposedly, the mayor is ready to pull the plug on its power supply.

Bitcoin mining

Speaking on the matter, the mayor noted:

They could have gone anywhere in the world and they chose Medicine Hat. […] [Hut 8] is not here for renewable energy because it is not reliable. They need gas-fired generation and we have it in spades.

Common Misconceptions

While the case of Hut 8 might, indeed, cause worries for the consumption of energy in the area and the consequences of that, it’s important to note that this is an isolated example.

It’s undeniable that Bitcoin mining is an energy-intensive activity, but it’s important to note that the industry, as the entire cryptocurrency field, is still at a rather nascent stage.

As Live Bitcoin News recently reported, every new technology which comes along is energy-intensive. However, as it matures, new sources of electricity are being explored and implemented, hence making the entire industry a lot less of an environmental burden that people commonly mistake it for.

What do you think of Medicine’s Hat move to potentially cut off the power supply to Hut 8’s mining farm? Don’t hesitate to let us know in the comments below!

Images courtesy of ShutterStock


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