Hut 8 expands mining operations in West Texas with energy deal
Bitcoin miner Hut 8 has reached an agreement to increase its mining power in Texas.
According to a July 9 announcement, the company has secured an agreement to purchase 205 megawatts of power and land in West Texas. The transaction is expected to expand Hat 8's energy infrastructure platform to 1.3 gigawatts of capacity.
The site is adjacent to a wind farm and connected to the Electric Reliability Council of Texas (ERCOT), which is responsible for managing the flow of electricity to about 90% of the state's electric load. According to Hut 8, it now has “the lowest local wholesale prices in North America.”
“This is the first time that a large data center installation has been approved under the complex regulatory framework in this market,” said Asher Gennot, CEO of Hut 8.
In the year In December 2023, Hat8 merged with US Bitcoin Corp to create a new entity in a $725 million deal. Since then, the company has been growing in the United States. In February, Hut 8 began construction on a new 63-megawatt mine in Culberson County. The new system offers a 30% lower cost compared to other mining sites in the country, according to the company.
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After the miners are halved
In response to the recent April halving, Bitcoin miners have been taking steps to redistribute revenue streams to data centers and increase their profitability, including mergers, acquisitions, and partnerships.
For example, CleanSpark recently announced an agreement to acquire five mining facilities in Georgia. The deal, which sold for $25.8 million, is expected to deliver more than 3.7 exahashes per second (EH/s). In mining areas, the power generation is from 8 to 15 megawatts for a total of 60 megawatts.
Public Bitcoin mining companies received $2 billion in equity financing before the earnings cut. Marathon Digital, CleanSpark and Riot Platforms lead the fundraising with more than $1.33 billion in cash and significant Bitcoin reserves at the end of March.
According to data from CryptoQuant, miners saw their daily earnings drop by 63% after the halving. Bitcoin is trading at $57,683 at the time of writing, up 3.3% over the past 24 hours and up 28.1% year-to-date.
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