Hut 8 expands with a power purchase agreement for a site in West Texas, gaining access to 205 megawatts. The Bitcoin mining company, headquartered in Miami, aims to enhance its infrastructure platform.
Bitcoin mining company Hut 8 is set to significantly expand its infrastructure platform with a new power purchase agreement granting access to 205 megawatts in West Texas.
In a press release, Hut 8 highlighted the strategic location of the site, adjacent to a wind farm and connected to the Electric Reliability Council of Texas grid. This offers access to "some of the lowest locational wholesale power pricing in North America."
"The site is well-positioned to support a variety of high-density compute applications, including Bitcoin mining and AI. Hut 8 is finalizing a commercialization plan for the site with the aim of maximizing its value," a Hut 8 spokesperson said.
While financial details were not disclosed, the transaction is "subject to the satisfaction of customary conditions.” The latest expansion sets Hut 8 on track to grow its energy infrastructure platform to “approximately 1.3 gigawatts.”
Hut 8 chief executive Asher Genoot remarked that the agreement marks "the first time a large data center load has been approved under the complex regulatory framework in this particular market."
This expansion follows Hut 8’s recent milestone of securing $150 million in strategic funding from Coatue. The funding, structured through convertible notes with an 8% annual interest rate, aims to bolster Hut 8’s position in the artificial intelligence (AI) infrastructure market to meet rising demands.
