Hut 8 - Grading is underway at Hut 8’s 63 MW site in Culberson County, Texas.
Grading is underway at Hut 8’s 63 MW site in Culberson County, Texas.
Source: Hut 8.
  • Hut 8, one of North America’s largest digital asset miners, has begun construction of a new 63 MW mine in Culberson County, Texas, slated to come online in Q2 2024
  • The mine will be funded through a new treasury strategy that allows the company to invest its Bitcoin held in reserve, which stood at a little more than 9,100 coins as of January, representing approximately C$692 million
  • Hut 8 offers solutions at the intersection of infrastructure and energy through Bitcoin mining and hosting, managed services, energy arbitrage, traditional data centres, as well as artificial intelligence and machine learning
  • Hut 8 stock is up by 10.18 per cent year-over-year, and has added 93.02 per cent since 2019

Hut 8 (TSX:HUT), one of North America’s largest digital asset miners, has begun construction of a new 63 MW mine in Culberson County, Texas, slated to come online in Q2 2024.

The strategic location, near Hut 8’s transitioning facilities in Granbury, Texas, and Kearney, Nebraska, will allow the company more flexibility to step down or step up production, depending on network difficulty, a measure of the computing power required to mine Bitcoin or other cryptocurrencies.

“The Culberson County project exemplifies Hut 8’s focus on operating excellence,” Hut 8’s chief executive officer, Asher Genoot, said in a statement. “Our in-house development team enables us to build quickly and cost-effectively. Compared to the benchmark of approximately US$460,000 per MW set by recent acquisitions in the area, our all-in cost to design and build the Culberson County site is expected to be less than US$275,000 per MW. This represents savings of more than 40 per cent, or approximately US$18,500,000 in up-front development costs per every 100 MW of expansion. For the Culberson County site specifically, this means that we expect to build the site for US$17.3 million or less, instead of approximately US$29 million.”

Hut 8 opens Bitcoin holding for strategic allocations

Hut 8 will fund the Culberson County mine through a new treasury strategy that allows it to invest its Bitcoin held in reserve, which stood at a little more than 9,100 coins as of January 2024, representing approximately C$692 million at the cryptocurrency’s current price.

The strategy is designed to enhance growth initiatives, balanced sheet value, market capitalization, energy costs and costs to mine a Bitcoin.

Moving forward, the company may sell its Bitcoin, deploy it in option strategies, or institute any other approaches it deems appropriate.

“Breaking ground at the Culberson County site marks the introduction of Hut 8’s new treasury strategy, which focuses on deploying our stack strategically to grow the business, create shareholder value and minimize dilution,” Genoot added. “As we head into the halving, we anticipate that distressed assets will become available at favourable valuations and create opportunities for further growth. A core principle of our new strategy is to deploy capital thoughtfully and strategically to maintain a strong balance sheet and position ourselves to evaluate these opportunities as they arise.”

Hut 8 offers solutions at the intersection of infrastructure and energy through Bitcoin mining and hosting, managed services, energy arbitrage, traditional data centres, as well as artificial intelligence and machine learning.

The company operates five high-performance computing data centres across British Columbia and Ontario, and six Bitcoin mining, hosting and managed services sites in Alberta, New York, Nebraska and Texas.

Hut 8 stock (TSX:HUT) last traded at C$12.45 per share. The stock is up by 10.18 per cent year-over-year, and has added 93.02 per cent since 2019.

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