Hut 8 intends to develop four large-scale infrastructure sites across the U.S., enhancing capacity by 1,530 megawatts (MW) as part of a strategy to expand from bitcoin mining to broader digital infrastructure.
This article from Theminermag, a trade magazine for the cryptocurrency mining industry, focuses on the latest news and research about bitcoin mining companies by sector.
Hut 8 announced on Monday that new projects – spanning from Louisiana, Texas to Illinois – have a capacity ranging from 50 MW to 1,000 MW and will push Hut 8's system beyond 10 gigawatts of potential capacity. Once operational, this latest expansion will elevate Hut 8’s platform to over 2.5 gigawatts of managed capacity across 19 sites.
To support its development, Hut 8 is relying on multiple sources of financing, including a $200 million revolving credit facility with digital asset investment firm Two Prime and a $130 million adjustable price credit line with Coinbase. Together, these facilities provide $330 million in non-dilutive growth capital, with a weighted average cost of 8.4%.
The company also launched a $1 billion at-the-market stock program last week, as previously reported. Additionally, Hut 8 stated that it is negotiating with banks for project-level financing tied to specific data center developments.
Hut 8 holds over 10,000 bitcoins valued at approximately $1.2 billion as of August 25, which it views as a reserve asset base to secure loans or generate profits. The company stated that its liquidity resources, including cash, credit, and bitcoin, amount to $2.4 billion.
The latest expansion comes as Hut 8 accelerates its transition to energy and digital infrastructure, including high-performance computing and other energy-intensive technologies. CEO Asher Genoot described the 1.5 gigawatts of new development capacity as "the initial stage in realizing a multi-gigawatt energy generation system that supports our long-term growth trajectory." However, the company did not provide a construction timeline or commercialization plan for the anticipated infrastructure.
