Hut 8 started construction of a 63MW crypto mining site in Texas
North American digital asset miner Hut 8 has begun construction on a 63 megawatt mining facility in Culberson County, Texas, its fifth US mining site.
The new facility is expected to be open for business with miners online in Q2 2024.
It's a great day to build, esp. Save 40% on the purchase of turnpikes! Construction is underway at our new site in Culberson County, TX: Expected to come online in Q2, the 63 MW site is expected to have up to 3.6 EH/s of self-generating capacity. More info on our… pic.twitter.com/LEG347mrEu
— Hut 8 (@Hut8Corp) February 27, 2024
Mining cost reduction
According to the press release, Hut 8 expects to be able to mine Bitcoin (BTC) for 30% less than the cost of mining at its other sites in Texas and Nebraska.
Per Hut 8 CEO Asher Ginot said the costs of setting up the new facility were very low.
“Our cost to design and build the Culberson County site is expected to be less than $275,000 per MW compared to the approximately $460,000 per MW set by recent acquisitions in the area. This represents a savings of more than 40%, or approximately $18,500,000 in upfront development costs per 100MW of expansion costs.”
Step 1: Buy a new site Step 2: Build a site 40% cheaper than your peers (and cheaper than the last sold site) Step 3: Reduce cost per coin by 30% Step 4: Increase self-mining exahash Step 5: Rinse and repeat #Bitcoin #BitcoinMining $HUT …
— Sue Ennis (@bigsuey) February 27, 2024
The merger of USBTC and the chaos of the company
Cointelegraph recently reported that Canada-based Hat8 and US Bitcoin Corporation will form a new company through a merger in December 2023. After the reported $725 million merger, the company continues to operate under the name Hut 8, an American housing corporation headquartered in Miami, Florida.
Hut 8's move to expand comes at a tumultuous time for the company. Recently, a company called JCapital Research was accused of “pump and dump”, focusing on profiting from short sales on its website.
In response, Hut 8 called JCapital a “self-proclaimed group of biased activists who clearly stand to profit if the company's stock price drops.”
Related: Hut 8 CEO after a few weeks, the seller threw accusations
The company has recused itself in a class-action lawsuit alleging that it “made false and/or misleading statements and/or failed to disclose: (i) one of USBTC's largest shareholders is an unidentified related party.” (ii) USBTC's core asset has historically been unable to provide power and high-speed Internet. and (iii) the profitability of certain USBTC assets is overstated.
UPDATE 12:55 PST 2/27: The article has been changed to reflect a single lawsuit.
