Hut 8 to finance new Texas mining facility with Bitcoin reserves

Bitcoin miner Hut 8 intends to usage portion of its reserve BTC holdings to concern establishing a caller mining installation successful Culberson County, Texas.

According to a Feb. 27 statement, this determination is portion of a caller treasury strategy that would leverage the firm’s BTC reserves to bolster its equilibrium expanse and enactment maturation endeavors.

Hut 8 CEO Asher Genoot said:

“As we caput into the halving, we expect that distressed assets volition go disposable astatine favorable valuations and make opportunities for further growth. A halfway rule of our caller strategy is to deploy superior thoughtfully and strategically to support a beardown equilibrium expanse and presumption ourselves to measure these opportunities arsenic they arise.”

Hut 8 is one of the largest Bitcoin mining firms successful the industry. The institution has a BTC reserve of much than 9,000 BTC, estimated to beryllium worthy $523 million.

New mining facility

Hut 8’s planned caller mining installation is simply a 63-megawatt (MW) tract successful Texas that is expected to person up to astir 3.6 EH/s of self-mining capacity. The steadfast plans to bring miners online astatine the installation by the 2nd quarter.

The steadfast stated that the outgo of mining a Bitcoin astatine the caller tract would beryllium 30% cheaper compared to the outgo of mining astatine different sites.

According to the firm, the caller tract would outgo astir $17.3 cardinal oregon little alternatively of the region’s benchmark outgo of $29 million. Genoot attributed this reduced interest to the firm’s in-house improvement team, which builds “quickly and cost-effectively.”

“Compared to the benchmark of astir $460,000 per MW acceptable by caller acquisitions successful the area, our all-in outgo to plan and physique the Culberson County tract is expected to beryllium little than $275,000 per MW. This represents a savings of much than 40%, oregon astir $18,500,000 successful upfront improvement costs per each 100 MW of expansion,” helium added.

The station Hut 8 to concern caller Texas mining installation with Bitcoin reserves appeared archetypal connected CryptoSlate.