According to the miner, this site offers immediate access to power and marks the first step in its plan to develop 1,100 megawatts of exclusive energy capacity.
Hut 8 pointed out that this was its first project following the $150 million investment from Coatue to support the buildout of the next-generation energy infrastructure platform.
Following the news, Hut 8’s stock prices rose by 2.06% during early market trading, according to Yahoo Finance data.
The site
The PPA site, located next to a wind farm, is connected to a grid belonging to the Electric Reliability Council of Texas (ERCOT). This connection gives Hut 8 access to some of North America’s lowest wholesale power prices.
The site already has an operational substation, and work is underway to build a new data center. The miner stated that the location is ideal for supporting high-density computing applications like Bitcoin mining and artificial intelligence.
Hut 8 CEO Asher Genoot highlighted the significance of this move, noting that it showcases the firm’s expertise in navigating regulatory challenges. The project is the first of its kind “under the complex regulatory framework in this particular market.”
He added:
“This transaction exemplifies Hut 8’s differentiated approach to securing new energy capacity through mutually accretive partnerships. We continue to identify opportunities to work hand-in-hand with energy partners to develop bespoke structures that generate outsized value for every party involved.”
Meanwhile, this development arrives amid a significant decline in Bitcoin miners’ earnings. However, Hut 8 reported growth in Bitcoin production last month. The firm produced 107 BTC in June, up from 91 BTC in May.
