Skip to content
Finance Investment

Hut 8 Commences Construction of New Digital Asset Mining Site in Culberson County, Announces New Treasury Strategy

Hut 8 Corp. 5 mins read

63 MW site, planned to be energized in Q2, will be Hut 8’s newest North American mining operation

Site expected to have up to approximately 3.6 EH/s of self-mining capacity

Hut 8 to utilize its Bitcoin stack strategically to finance growth initiatives

MIAMI, Feb. 27, 2024 (GLOBE NEWSWIRE) -- Hut 8 Corp. (Nasdaq | TSX: HUT) (“Hut 8” or the “Company”), one of North America’s largest, innovation-focused digital asset mining pioneers and high-performance computing infrastructure provider, is pleased to announce that it has commenced construction of its newest digital asset mining site in Culberson County, Texas. With construction underway, the Company expects to bring miners online at the site in Q2 2024.

The Culberson County site creates the optionality for the Company to expand its self-mining fleet or to transition existing self-mining activity from Granbury, Texas and Kearney, Nebraska to the site. The site is expected to have up to approximately 3.6 EH/s of self-mining capacity if current generation miners are deployed. Based on current energy price forecasts, the Company expects that its cost to mine a Bitcoin at the Culberson County site will be approximately 30% lower than its cost to mine a Bitcoin through its hosted miners at Granbury, Texas and Kearney, Nebraska.

“The Culberson County project exemplifies Hut 8’s focus on operating excellence,” said Hut 8 CEO Asher Genoot. “Our in-house development team enables us to build quickly and cost-effectively. Compared to the benchmark of approximately $460,000 per MW set by recent acquisitions in the area, our all-in cost to design and build the Culberson County site is expected to be less than $275,000 per MW. This represents a savings of more than 40%, or approximately $18,500,000 in upfront development costs per every 100 MW of expansion. For the Culberson County site specifically, this means that we expect to build the site for $17,300,000 or less, instead of approximately $29,000,000.”

The Company has also formally enacted a new treasury strategy that provides for the use of Bitcoin held in reserve to build balance sheet value and finance growth initiatives. Bitcoin held in reserve may be deployed through direct sales, option strategies, or other approaches. The strategy is designed to enhance the Company’s ability to execute strategic initiatives, increase its operating scale, and optimize metrics such as energy cost and cost to mine a Bitcoin. Decisions to utilize Bitcoin held in reserve will be made on a case-by-case basis. The Company will use this strategy to fund capital expenditures for the Culberson County site.

“Breaking ground at the Culberson County site marks the introduction of Hut 8’s new treasury strategy, which focuses on deploying our stack strategically to grow the business, create shareholder value, and minimize dilution,” said Genoot. “As we head into the halving, we anticipate that distressed assets will become available at favorable valuations and create opportunities for further growth. A core principle of our new strategy is to deploy capital thoughtfully and strategically to maintain a strong balance sheet and position ourselves to evaluate these opportunities as they arise.”

About Hut 8

Through innovation, imagination, and passion, Hut 8 Corp.’s seasoned executive team is bullish on creating value at the intersection of infrastructure and energy through Bitcoin mining and hosting, groundbreaking managed services, energy arbitrage, operating traditional data centers, and capitalizing on emerging technologies like AI and machine learning. Headquartered in Miami, Florida, Hut 8 Corp.’s infrastructure portfolio includes eleven sites: five high performance computing data centers across British Columbia and Ontario that offer cloud, co-location, AI, machine learning, and VFX rendering computing solutions, and six Bitcoin mining, hosting, and managed services sites located in Alberta, New York, Nebraska, and Texas. Long-distinguished for its unique treasury strategy, Hut 8 Corp. has one of the highest inventories of self-mined Bitcoin of any publicly-traded company globally. For more information, visit www.hut8.com and follow us on X (formerly known as Twitter) at @Hut8Corp.

Cautionary Note Regarding Forward–Looking Information
This press release includes "forward-looking information" and "forward-looking statements" within the meaning of Canadian securities laws and United States securities laws, respectively (collectively, "forward-looking information"). All information, other than statements of historical facts, included in this press release that address activities, events or developments that Hut 8 expects or anticipates will or may occur in the future, including such things as future business strategy, competitive strengths, goals, expansion and growth of the business, operations, plans and other such matters is forward-looking information. Forward-looking information is often identified by the words "may", "would", "could", "should", "will", "intend", "plan", "anticipate", "allow", "believe", "estimate", "expect", "predict", "can", "might", "potential", "predict", "is designed to", "likely" or similar expressions. Specifically, such forward-looking information included in this press release includes, but is not limited to, statements relating to the Company’s new treasury strategy, the build out and capacity of the Company’s site in Culberson County, Texas, including the expected cost to mine a Bitcoin at the site, and the Company’s future vision, objectives, and success, including its ability to capture future upside and create shareholder value.

Statements containing forward-looking information are not historical facts, but instead represent management's expectations, estimates and projections regarding future events based on certain material factors and assumptions at the time the statement was made. While considered reasonable by Hut 8 as of the date of this press release, such statements are subject to known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information, including but not limited to, security and cybersecurity threats and hacks, malicious actors or botnet obtaining control of processing power on the Bitcoin network, further development and acceptance of the Bitcoin network, changes to Bitcoin mining difficulty, loss or destruction of private keys, increases in fees for recording transactions in the Blockchain, erroneous transactions, reliance on a limited number of key employees, reliance on third party mining pool service providers, regulatory changes, classification and tax changes, momentum pricing risk, fraud and failure related to digital asset exchanges, difficulty in obtaining banking services and financing, difficulty in obtaining insurance, permits and licenses, internet and power disruptions, geopolitical events, uncertainty in the development of cryptographic and algorithmic protocols, uncertainty about the acceptance or widespread use of digital assets, failure to anticipate technology innovations, the COVID19 pandemic, climate change, currency risk, lending risk and recovery of potential losses, litigation risk, business integration risk, changes in market demand, changes in network and infrastructure, system interruption, changes in leasing arrangements, failure to achieve intended benefits of power purchase agreements, potential for interrupted delivery, or suspension of the delivery, of energy to the Company's mining sites, and other risks related to the digital asset and data center business. For a complete list of the factors that could affect the Company, please see the "Risk Factors" section of the Company's Registration Statement on Form S-4 dated November 7, 2023, available under the Company's EDGAR profile at www.sec.gov, and Hut 8's other continuous disclosure documents which are available under the Company's SEDAR+ profile at www.sedarplus.ca and under the Company's EDGAR profile at www.sec.gov.

Hut 8 Corp. Investor Relations
Sue Ennis
sue@hut8.io

Hut 8 Corp. Media Relations
Erin Dermer
erin.dermer@hut8.io

Hut 8 is building a new site in Culberson County, Texas for 40% less than the cost of buying a turnkey site. Expected to come online in Q2, the site is expected to have up to 3.6 EH/s of self-mining capacity.

Caption: Hut 8 is building a new site in Culberson County, Texas for 40% less than the cost of buying a turnkey site. Expected to come online in Q2, the site is expected to have up to 3.6 EH/s of self-mining capacity.

Grading is underway at Hut 8’s 63 MW site in Culberson County, Texas

Caption: Grading is underway at Hut 8’s 63 MW site in Culberson County, Texas

Photos accompanying this announcement are available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/a723932d-4e82-4c32-973a-22d20d478e97

https://www.globenewswire.com/NewsRoom/AttachmentNg/51bce6f7-6d82-432f-876f-eede141ce252 


Primary Logo

More from this category

  • Finance Investment
  • 12/07/2024
  • 07:01
NALSPA

Tax time: Salary packaging can ease cost-of-living pressures for Aussie workers

As Australians begin to submit their tax returns and plan for this financial year amid the heightened cost of living, NALSPA is encouraging workers and their employers to consider their salary packaging options. The National Automotive Leasing and Salary Packaging Association (NALSPA) chief executive Rohan Martin said it is timely to think about taking advantage of pre-tax pay strategies that can help boost tax savings and put more money in your pocket. “The new financial year is a time where many of us think about the amount of tax we are paying as well as our household budgets. We all…

  • Business Company News, Finance Investment
  • 11/07/2024
  • 10:21
Airwallex

New research reveals 67 percent of Australian travel companies see their profit margins eroded by inefficient payment systems

Airwallex and Skift research finds two-thirds (67 percent) of travel executives in Australia believe inefficient payment systems are harming their profits 79 percent find…

  • Contains:
  • Finance Investment, Taxation
  • 11/07/2024
  • 09:09
Tax Practitioners Board

New Code Determination lifts professional standards for tax practitioners

A new Ministerial power to expand the obligations in the Code of Professional Conduct (Code) was introduced to enable a swift response to any emerging or existing risks in tax practitioner behaviours and practices. This strengthens the regulatory framework and is consistent with the Government’s announcement in August 2023 to crack down on misconduct and rebuild confidence in the systems and structures that keep our tax system strong. From 1 August 2024 tax practitioners will need to comply with 8 additional obligations that will supplement the existing obligations under the Code. These new obligations reinforce public trust and confidence in…

  • Contains:

Media Outreach made fast, easy, simple.

Feature your press release on Medianet's News Hub every time you distribute with Medianet. Pay per release or save with a subscription.