JAKARTA - Hut 8, North America's largest bitcoin mining company recently announced their expansion plan in Texas, United States. The company, which is listed on the Toronto stock exchange, is building a new bitcoin mining facility in Culberson Regency, Texas, which is expected to be operational in the second quarter of 2024.
This new facility will increase the mining capacity of Hut 8 by 63 megawatts (MW), or equivalent to 3.6 exahash per second (EH/s). Thus, the total mining capacity of Hut 8 will reach around 10 EH/s, making them one of the main players in the global bitcoin mining industry.
In addition, Hut 8 also claims that the operational costs of this new facility will be lower than their other facilities in Granbury, Texas, and Kearney, Nebraska. This is because the location in Culberson Regency has a cheap and sustainable energy source, as well as a supportive climate.
"We can build this facility at a much more cost-effective cost than our competitors in the same area," said Aser Genoot, CEO of Hut 8, in a press release. We estimate construction costs per MW are only around US$275,000 (Rp4.3 billion), or 40% cheaper than the average market of 460,000 US dollars (Rp7.2 billion) per MW," he added.
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To fund this expansion project, Hut 8 relies on their bitcoin reserves. The company has more than 5,000 bitcoins on their balance sheet, which is worth about $250 million at the moment. Hut 8 says they will use flexible financial strategies, such as direct sales, options, or loans, to convert some of their bitcoins into US dollars as needed.
"We believe that having bitcoin as our asset is the right strategy, because bitcoin has a huge price increase potential in the future," said Genoot. However, we are also aware that we need to manage the risk of bitcoin price volatility, and take advantage of opportunities to get funding at low cost," he continued.
Hut 8 is one of the oldest and largest bitcoin mining companies in the world. The company was founded in 2017, and has generated more than 13,000 bitcoins since then. In December 2023, Hut 8 completed a merger with US Bitcoin Corp., a digital infrastructure company based in Miami, Florida. The merger aims to scale up, efficiency, and diversify Hut 8 in the North American market.
Hut 8 shares are trading on the Toronto stock exchange with the code HUT, and on the Nasdaq stock exchange with the code HUTMF. In the past month, Hut 8 shares rose about 15% against the US dollar, but fell about 8.5% in the last five days. On Friday, February 23, 2024, Hut 8 shares closed at 11.10 Canadian dollars (Rp120,000) in Toronto, and 8.27 US dollars (Rp 129,000) in Nasdaq.
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