Hut 8 to finance new Texas mining facility with Bitcoin reserves Hut 8 to finance new Texas mining facility with Bitcoin reserves
The miner believes the upcoming halving event would provide opportunities for furthe growth.
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Updated: Feb. 28, 2024 at 2:08 am UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Bitcoin miner Hut 8 intends to use part of its reserve BTC holdings to finance establishing a new mining facility in Culberson County, Texas.
According to a Feb. 27 statement, this decision is part of a new treasury strategy that would leverage the firm’s BTC reserves to bolster its balance sheet and support growth endeavors.
Hut 8 CEO Asher Genoot said:
“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.”
Hut 8 is one of the largest Bitcoin mining firms in the industry. The company has a BTC reserve of more than 9,000 BTC, estimated to be worth $523 million.
New mining facility
Hut 8’s planned new mining facility is a 63-megawatt (MW) site in Texas that is expected to have up to approximately 3.6 EH/s of self-mining capacity. The firm plans to bring miners online at the facility by the second quarter.
The firm stated that the cost of mining a Bitcoin at the new site would be 30% cheaper compared to the cost of mining at other sites.
According to the firm, the new site would cost approximately $17.3 million or less instead of the region’s benchmark cost of $29 million. Genoot attributed this reduced fee to the firm’s in-house development team, which builds “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%, or approximately $18,500,000 in upfront development costs per every 100 MW of expansion,” he added.
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Oluwapelumi Adejumo
Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.
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Hut 8
Hut 8 is a digital asset miner with two digital asset mining sites located in Southern Alberta and a third site in North Bay, Ontario, Canada.