Hut 8 said it has entered into a power purchase agreement for a site in West Texas with access to 205 megawatts.
Bitcoin mining company Hut 8 is gearing up to expand its infrastructure platform significantly with the latest agreement that gives the Miami-headquartered miner access to 205 megawatts in West Texas.
In a Tuesday press release, Hut 8 said the site is adjacent to a wind farm and connected to the Electric Reliability Council of Texas grid, offering access to โsome of the lowest locational wholesale power pricing in North America.โ
โThe site is well-positioned to support a variety of high-density compute applications, including Bitcoin mining and AI. Hut 8 is finalizing a commercialization plan for the site with the aim of maximizing its value,โ a spokesperson for Hut 8 added.
While financial details were not disclosed, the transaction is still โsubject to the satisfaction of customary conditions.โ However, itโs understood that with the latest expansion, the company is on track to expand its energy infrastructure platform to โapproximately 1.3 gigawatts.โ
Hut 8 chief executive Asher Genoot pointed out that the agreement is the โfirst time a large data center load has been approved under the complex regulatory framework in this particular market.โ
For the Miami-headquartered miner, the latest expansion follows Hut 8โs recent milestone of securing a $150 million strategic funding from Coatue to bolster its position in the artificial intelligence (AI) infrastructure market. The funding, structured through convertible notes with an 8% annual interest rate, aims to support Hut 8โs strategic move into AI infrastructure to meet rising market demands.
