In January 2023, Jamie Leverton, the CEO of Hut 8, a publicly traded crypto mining entity, participated in a fireside chat with me at the Crypto Summit on the Promenade during the World Economic Forum’s annual conference in Davos, Switzerland. Leverton shared her thoughts on the recent cryptocurrency market shakeout and discussed how Bitcoin mining is faring in the current turbulent period for the industry.
The crypto industry experienced significant growth in 2021 and 2022, followed by struggles in the bear market, bankruptcies, and job cuts. Leverton, who took on the role of CEO at Hut 8 Mining just over two years ago, witnessed these ups and downs firsthand.
When asked about her experiences leading Hut 8 through the industry’s ups and downs, Leverton acknowledged the volatility that everyone in the crypto space has faced. She specifically mentioned the significant swings the mining industry has experienced in the past two years, describing 2022 as the “perfect storm” for the Bitcoin mining industry.
Hut 8, a pioneer in the public Bitcoin mining sector, entered the Canadian market in 2018 and subsequently joined the Nasdaq in 2022. Leverton attributed the influx of capital into digital asset mining during the 2021 bull run to increased leverage.
She noted that the industry has been shaken up, causing those who took on a lot of leverage to struggle. As a result, consolidation is occurring in the space, with more companies diversifying their portfolios. Hut 8 began this diversification process during the bull market.
Leverton’s impact in the crypto industry was recognized by her inclusion in Cointelegraph’s Top 100 list of influential players, where she ranked 73rd in the 2023 edition.
During the interview, Leverton emphasized the potential of Bitcoin mining. She highlighted the promise of innovation and investment in renewables that Bitcoin mining brings. Leverton mentioned that Bitcoin mines can be located where waste energy is produced, even in rural African communities. She expressed excitement about the self-funding initiatives undertaken by miners, which she believes are the most exciting developments in the mining space in 2023 and 2024.
A report released in January 2023 by the Bitcoin Mining Council revealed that Bitcoin mining accounted for 58.9% of energy usage in the fourth quarter of 2022. Energy usage in the crypto space has been a topic of debate, with Elon Musk, the CEO of Tesla, expressing interest in the subject. However, a different Cointelegraph interview with cybersecurity engineer Michel Khazzaka argued that the mainstream banking world consumes more energy than Bitcoin.
Overall, Leverton’s insights shed light on the challenges and opportunities facing the crypto mining industry, particularly in relation to Bitcoin. She believes that Bitcoin mining has the potential to drive innovation and investment in renewables, making it an exciting prospect for the future.