Photo courtesy of Hut 8
Grading is under way at Hut 8’s 63 MW site in Culberson County.
Hut 8 Corp., one of North America's largest, digital asset mining pioneers and computing infrastructure providers, recently announced that it has commenced construction of its newest digital asset mining site in Culberson County, Texas. With construction under way, the company expects to bring miners online at the site in Q2 2024.
The Culberson County site creates the optionality for the company to expand its self-mining fleet or to transition existing self-mining activity from Granbury, Texas and Kearney, Neb. to the site. The site is expected to have up to approximately 3.6 EH/s of self-mining capacity if current generation miners are deployed. Based on current energy price forecasts, the company expects that its cost to mine a Bitcoin at the Culberson County site will be approximately 30 percent lower than its cost to mine a Bitcoin through its hosted miners at Granbury, Texas and Kearney, Neb.
"The Culberson County project exemplifies Hut 8's focus on operating excellence," said Hut 8 CEO Asher Genoot. "Our in-house development team enables us to build quickly and cost-effectively. Compared to the benchmark of approximately $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 $275,000 per MW. This represents a savings of more than 40 percent, or approximately $18,500,000 in upfront development costs per every 100 MW of expansion. For the Culberson County site specifically, this means that we expect to build the site for $17,300,000 or less, instead of approximately $29,000,000."
The company also has formally enacted a new treasury strategy that provides for the use of Bitcoin held in reserve to build balance sheet value and finance growth initiatives. Bitcoin held in reserve may be deployed through direct sales, option strategies or other approaches. The strategy is designed to enhance the company's ability to execute strategic initiatives, increase its operating scale and optimize metrics such as energy cost and cost to mine a Bitcoin. Decisions to utilize Bitcoin held in reserve will be made on a case-by-case basis. The company will use this strategy to fund capital expenditures for the Culberson County site.
"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," said Genoot. "As we head into the halving, we anticipate that distressed assets will become available at favorable 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."
About Hut 8
Through innovation, imagination and passion, Hut 8 Corp.'s executive team is bullish on creating value at the intersection of infrastructure and energy through Bitcoin mining and hosting, groundbreaking managed services, energy arbitrage, operating traditional data centers and capitalizing on emerging technologies like AI and machine learning. Headquartered in Miami, Fla., Hut 8 Corp.'s infrastructure portfolio includes 11 sites: five high performance computing data centers across British Columbia and Ontario that offer cloud, co-location, AI, machine learning and VFX rendering computing solutions; and six Bitcoin mining, hosting and managed services sites located in Alberta, N.Y., Nebraska and Texas. Long-distinguished for its unique treasury strategy, Hut 8 Corp. has one of the highest inventories of self-mined Bitcoin of any publicly-traded company globally.
For more information, visit www.hut8.com
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