Hut 8 miner uses bitcoin reserves to build a 63MW farm

The company intends to use BTC in its accounts and for other business growth initiatives

28.02.2024 - 10:00

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3 min

What’s new? Bitcoin mining company Hut 8 has started construction of a new 63 MW mining facility of $17,3 million in Culberson County, Texas. The facility is expected to be operational by Q2 and is expected to increase the company’s hashrate by 3,6 EH/s. Managers expect the cost of BTC mining operations in Culberson to be 30% cheaper compared to other areas in Texas and Nebraska, where Hut 8 farms are also located.

Press release

What else is known? The company will also begin using bitcoin reserves to expand its business through direct sales, option strategies, and other approaches, said CEO Asher Genoot, who took office earlier this month.

Hut 8 expects distressed asset prices to become more favorable as the Bitcoin network halving approaches, creating opportunities for further growth.

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“A core principle of our new strategy is to deploy capital thoughtfully and strategically to maintain a strong balance sheet,” Genoot said. Notably, the construction of a new farm in Culberson has also been funded by the company’s bitcoin reserves.

Earlier this month, lending platform Celsius emerged from bankruptcy by reorganizing into a mining company called Ionic Digital under Hut 8 Chief Commercial Officer Matt Prusak.

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The Texas Blockchain Council (TBC) and miner Riot later filed a lawsuit against the Department of Energy for allegedly illegally collecting data on BTS mining companies related to energy consumption. The ministry agreed to drop the investigation.

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