Key Takeaways:
- Hut 8 has secured a deal for 205 megawatts of power and land in West Texas, expanding its energy infrastructure to 1.3 gigawatts.
- The new site is near a wind farm, connected to ERCOT, benefiting from low wholesale power prices.
- This is the first major data center load approved under the region’s regulatory framework, post a $725 million merger with US Bitcoin Corp.
Hut 8, a Bitcoin mining company, has secured a significant deal to expand its operations in West Texas.
Announced on July 9, the agreement includes 205 megawatts of power and land, increasing Hut 8’s energy infrastructure to approximately 1.3 gigawatts.
Hut 8 has executed definitive agreements for a 205 MW greenfield site in West Texas, expanding our energy infrastructure platform to approximately 1.3 gigawatts.
— Hut 8 (@Hut8Corp) July 9, 2024
This transaction marks several firsts, including:
– The first transaction to convert from our previously announced… pic.twitter.com/x5YRLVDxtL
The site is adjacent to a wind farm and connected to the Electric Reliability Council of Texas (ERCOT), offering some of North America’s lowest wholesale power prices.
This deal marks the first major data center load approved under the region’s regulatory framework, according to CEO Asher Genoot.
Following a $725 million merger with US Bitcoin Corp in December 2023, Hut 8 began building a new 63-megawatt mining facility in Culberson County, reducing mining costs by 30%.
Amid a 63% drop in daily revenues post-halving, miners like CleanSpark and Marathon Digital are diversifying and increasing their hashrate.
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