- Hut 8 (TSX:HUT), one of North America’s largest Bitcoin miners, has energized one-third of its 63 MW Salt Creek mining site in Culberson County, Texas
- Management expects Salt Creek to mine Bitcoin at a 30 per cent lower cost than its hosted facilities
- Hut 8 is a North American Bitcoin miner and computing infrastructure provider
- Hut 8 stock (TSX:HUT) has given back 27.25 per cent year-over-year, but has gained 35.77 per cent since 2019
Hut 8 (TSX:HUT), one of North America’s largest Bitcoin miners, has energized one-third of its 63 MW Salt Creek mining site in Culberson County, Texas.
Management expects Salt Creek, which was energized only 78 days after breaking ground, to mine Bitcoins at a 30 per cent lower cost than hosted facilities thanks to its favourable energy profile. The company plans to further activate the site in the coming weeks.
Salt Creek is set up to maximize shareholder value through Hut 8’s proprietary energy curtailment software, Reactor, which automates site operations, proactively reduces energy costs, and ensures that miners operate only when profitable.
The news follows a series of restructuring measures stemming from Hut 8’s merger with USBTC, including the transfer of high-efficiency Bitcoin miners from its Kearney and Granbury sites to Salt Creek in March to expedite site energization, cut costs and maintain fleet flexibility in anticipation of the upcoming Bitcoin halving.
A Bitcoin halving marks the 50 per cent reduction in rewards Bitcoin miners receive for providing their services. The reduction occurs every four years, and will ultimately cap total Bitcoins in circulation to 21 million in 2140.
The halving’s inflationary effect on the price of Bitcoin has led to more than 100 per cent increases in the year after the past three halvings in 2020, 2016 and 2012, with growing adoption of the cryptocurrency thanks to spot Bitcoin ETFs in the United States increasing the likelihood of an upside surprise.
Management insights
“With Salt Creek, we gain critical control over our miner fleet and operating costs as we head into the halving,” Asher Genoot, Hut 8’s chief executive officer, said in a statement. “I am incredibly proud of our team for delivering a standard-setting performance. What we have achieved in 78 days, including the removal of more than 25,000 miners from Kearney and Granbury in eight days, is a testament to our market-leading capabilities, work ethic and ability to execute.”
“We remain on track to deliver an incredibly cost-effective buildout: Our expected all-in cost of US$275,000 per MW or less represents a 40 per cent savings versus recent acquisitions in the area,” Genoot added. “As demonstrated with Salt Creek, we will continue to act decisively to strengthen and grow our self-mining business.”
About Hut 8
Hut 8 is a North American Bitcoin miner and computing infrastructure provider with nine Bitcoin mining, hosting and managed services sites in Alberta, New York, Nebraska and Texas, five high-performance computing data centres in British Columbia and Ontario, and four power-generation assets in Ontario.
Hut 8 Corp. stock (TSX:HUT) is down by 3.7 per cent, trading at C$9.64 per share as of 9:57 am ET. The stock has given back 27.25 per cent year-over-year, but has gained 35.77 per cent since 2019.
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