Bitcoin Miner Hut 8 Plans 1.5GW Expansion, Shares Jump 10%

TLDR

• Hut 8 is expanding its operations by adding 1.5 gigawatts of capacity across new sites in Texas, Louisiana, and Illinois.
• The expansion aims to address the growing demand for energy-intensive operations like Bitcoin mining and high-performance computing.
• Hut 8’s current mining capacity of 1 gigawatt is nearly 90% utilized, highlighting the need for further growth.
• Following the announcement, Hut 8’s stock surged by as much as 10.5% on the Nasdaq.
• The expansion targets areas with rapidly increasing energy demand, helping Hut 8 strengthen its market position.

Bitcoin mining company Hut 8 has revealed plans to expand its operations with four new mining sites in Texas, Louisiana, and Illinois. The expansion will add 1.5 gigawatts (GW) of capacity to the company’s existing infrastructure. Following the announcement, Hut 8’s stock rose by as much as 10.5% on the Nasdaq, reflecting strong market optimism.

Hut 8 Expands to Meet Growing Demand for Energy

Hut 8’s new facilities will target regions where energy demand is growing rapidly. The company aims to address the increasing need for energy-intensive operations, including Bitcoin mining and high-performance computing. According to CEO Asher Genoot, “By advancing more than 1.5 gigawatts of capacity, we position ourselves to more than double the scale of our platform.”

The company’s current capacity of 1 GW is already 90% utilized, demonstrating the need for further expansion. This growth comes at a time when US Bitcoin miners are increasing their share of the global hash rate. According to fintech platform OneSafe, US miners now control 75.4% of the global hash rate.

Hut 8 Targets Key US States for Growth

Hut 8’s expansion is focused on three US states: Texas, Louisiana, and Illinois. Texas has seen rapid growth in tech companies and Bitcoin mining operations, with some regulations targeting large-scale mining. Facilities in Texas, which exceed 75 megawatts of power, must register with the Public Utility Commission of Texas.

Louisiana has taken a different approach, passing a bill in June 2024 to support Bitcoin miners in industrial areas. This move aims to attract new businesses and boost the local economy. Illinois, while not having specific regulations, has seen the rise of mining facilities in cities like Bloomington-Normal and Effingham.

Hut 8’s strategic expansion into these states allows the company to diversify its energy supply and strengthen its presence in key markets. This move also aligns with its vision to meet the rising demand for energy in high-tech industries.

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