During the annual conference of the World Economic Forum in Davos, Switzerland in January 2023, I had the opportunity to sit down with Jaime Leverton, the CEO of Hut 8, a publicly traded crypto mining entity, for a fireside chat at the Crypto Summit on the Promenade. Leverton shared her insights on the recent turbulence in the cryptocurrency market and discussed the current state of Bitcoin mining amidst these challenges.
The crypto industry witnessed significant growth in 2021 and 2022, followed by a bear market, bankruptcies, and job losses. Leverton, who took on the role of CEO at Hut 8 Mining over two years ago, has experienced these ups and downs firsthand.
Jaime Leverton, CEO of Hut 8 (left), and Kristina Lucrezia Cornèr (right) during the Crypto Summit 2023 in Davos.
Reflecting on the past couple of years, Leverton acknowledged the volatility experienced by everyone in the crypto industry. She particularly highlighted the significant swings that the mining sector has undergone. Leverton stated, “2022 was really the perfect storm from a Bitcoin mining industry perspective.” She further emphasized that the industry has been shaken up, with those who took on substantial leverage facing challenges. As a result, she noted a trend of consolidation and diversification among companies, including Hut 8.
Hut 8 made its entry into the Canadian market in 2018 and later joined the Nasdaq in 2022, making it a pioneer in the Bitcoin mining sector among publicly traded entities. Leverton attributed the influx of capital into digital asset mining during the 2021 bull run as a factor contributing to increased leverage in the industry.
Leverton’s impact in the crypto industry was recognized by her inclusion in Cointelegraph’s annual Top 100 list, ranking 73rd in the 2023 edition.
Later in the interview, Leverton delved into the potential of Bitcoin mining. She expressed her fascination with the promise it holds, stating, “I think the most fascinating conversation that we need to be having around Bitcoin mining is actually the promise of it.”
The 58.9% figure mentioned in the article is derived from a report by the Bitcoin Mining Council, which published its 2022 Q4 survey results in January 2023. Energy usage in the crypto space has been a subject of debate, with prominent figures like Elon Musk expressing interest. However, cybersecurity engineer Michel Khazzaka argues that the energy usage of the mainstream banking world dwarfs that of Bitcoin.
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Hut 8 CEO asserts that the company’s merger would have occurred regardless of FTX or crypto turmoil.
Leverton highlighted the potential of Bitcoin mining to drive innovation and investment in renewable energy. She explained that Bitcoin mines can be located where waste energy is generated, without the need for transmission lines. Leverton mentioned the development of mining operations in rural African communities, which are self-funded and deemed as the most exciting development in the mining space for 2023 and 2024.