Bitcoin Miner Hut 8 Surges 10% on 1.5GW Expansion Plans
Hut 8 (HUT), a publicly traded bitcoin BTC$109,802.43 mining and energy infrastructure company, soared on Tuesday following the announcement of a strategy to more than double its operational power capacity.
The initiative involves constructing four additional facilities across the U.S., collectively contributing over 1.5 gigawatts (GW), which will elevate the firm’s total capacity to beyond 2.5 GW spread across 19 sites, as detailed in an official statement.
Shares climbed over 10%, reaching a seven-month peak near $26 apiece despite bitcoin’s continued stagnation below the $110,000 threshold.
Data center companies are experiencing revived investor enthusiasm as computing power demand escalates to support advancements in artificial intelligence. Earlier, Google acquired a minority stake in mining operator TeraWulf through a $3.2 billion AI infrastructure agreement.
“This growth represents a pivotal milestone in Hut 8’s transformation into a global leader in energy and digital infrastructure,” stated CEO Asher Genoot in the release.
The organization confirmed it has upgraded these initiatives from “exclusive” to “active development,” indicating finalized agreements for land and energy alongside progress on design and monetization strategies.
Funding for the ventures will involve accessing approximately $2.4 billion through multiple channels. These include leveraging its bitcoin reserves of 10,000 BTC (valued around $1.1 billion), a $200 million credit facility, an increased $130 million arrangement with Coinbase, and a newly introduced $1 billion equity issuance program.
Analysts at Roth Capital described the expansion as a “significant advancement,” predicting it could “substantially elevate the stock’s valuation” once operations commence and partnerships with AI and high-performance computing sectors solidify.
Read more: Bitcoin Mining Faces ‘Incredibly Difficult’ Market as Power Becomes the Real Currency
Source: cryptonews.net
