Hut 8 CEO and co-founder Andrew Kiguel has announced that he is leaving the crypto mining company almost two years after launching it. During his time at the company, Hut 8 has become one of the largest publicly listed Bitcoin mining companies, surviving the bear market where others haven’t, and building a huge 67 MW mining farm in Alberta, Canada. Kiguel will leave the company once a successor is found, but hasn’t confirmed his next venture.
Kiguel Leads Hut 8 Through Tough Times
Kiguel co-founded Hut 8 in late 2017, launching the company in March the following year at the very start of the longest bear market in Bitcoin’s history. This means that Kiguel was in charge during the most challenging time in the crypto cycle for mining outfits, so it is a credit to him that the company has performed so well – while many were collapsing, Hut 8 was able to maneuver effectively enough to not only survive but grow.
Indeed, in an interview with BitStarz News in August 2018, Kiguel revealed that he was “getting about one call a week from existing mining firms that are losing money”. Hut 8, meanwhile, managed to fight off the dark days of the bear market and reduced the cost of mining one BTC in 2019 from $3,950 to $2,757, showing great resilience in a tough market.
The Double Edged Sword of Bitcoin’s Association
One disappointment for Kiguel will be Hut 8’s share price during his time at the helm which has, perhaps unsurprisingly, mirrored the price action of Bitcoin. This has the double edged sword of being tied to one of the most volatile assets around, which is not ideal for those who thought they were investing in relatively more docile ‘traditional’ shares.
The price hit an all-time high of $5 shortly after launch on the Toronto stock exchange in March 2018, since when it has struggled to remain over $3, dipping down to $0.96 just a month ago. The issue for Hut 8 is that their share price is in a constant tug of war between its own performance and Bitcon’s price, which is not an enviable position to be in. This theory is supported by the fact that recent small moves in the Bitcoin price have had more of an impact on the share price than the announcement of the departure of the founder and CEO, which certainly says something.
We at BitStarz News wish Andrew all the best for his next venture.