Hut 8 Corp is taking a significant strategic turn by shifting the majority of its Bitcoin mining operations to a newly established entity, American Bitcoin, within the next week. This decision aims to reinforce Hut 8’s focus on energy while securing improved financing terms by decoupling mining revenue exposure.
In conjunction with this transition, Hut 8 has announced plans to enhance its operational capacity by an impressive 1.53 gigawatts (GW) across four sites in the United States—specifically situated in Louisiana, Texas, and Illinois. This expansion will bring Hut 8’s total managed capacity to an estimated 2.55 GW over 19 locations.
The new facilities will range in capacity from 50 megawatts (MW) to 1,000 MW, with concrete plans having progressed beyond the initial exclusivity phase. Notably, the Louisiana site is earmarked for 300 MW, while Illinois will provide an additional 50 MW. Two sites in Texas are set to contribute 1,000 MW and 180 MW respectively.
Hut 8’s CEO, Asher Genoot, emphasized that the transition of over 1.5 GW of capacity into development signals an effort to more than double the company’s footprint while diversifying its reach in the U.S. This initiative aims to meet the increasing energy demands from emerging sectors like artificial intelligence and high-performance computing (HPC).
Genoot remarked on the importance of this expansion, framing it as a pivotal moment in Hut 8’s evolution towards becoming one of the world’s leading platforms for energy and digital infrastructure.
### Financing the Expansion
To support this ambitious growth strategy, Hut 8 plans to utilise a liquidity pool of up to US$2.4 billion (approximately AU$3.68 billion). This funding will draw from a mix of resources, including cash reserves, a holding of 10,278 Bitcoins valued at US$1.2 billion (AU$1.84 billion), credit facilities from Two Prime and Coinbase, and a US$1 billion (AU$1.54 billion) at-the-market equity programme.
Market analyst Mark Palmer reacted positively to Hut 8’s expansion plans, raising his target on the company’s shares from US$33 (AU$50.7) to US$36 (AU$55.3), indicating a potential upside of nearly 40% for investors. Palmer noted that this move represents a clear strategy for monetising Hut 8’s energy assets while expanding its infrastructure capabilities.
In summary, Hut 8’s strategic adjustments and expansions not only reflect its commitment to becoming a major player in the energy and digital infrastructure sectors but also indicate a proactive approach to meeting the evolving demands of a rapidly changing technological landscape.
