Bitcoin miner Hut 8 has finalized a power purchase agreement for a site in West Texas boasting 205 megawatts of readily available power capacity alongside associated land. This agreement marks the initial transaction in Hut 8’s previously announced development pipeline featuring an exclusive energy capacity of 1,100 megawatts.
“This is the first time a large data center load has been approved under the complex regulatory framework in this particular market,” commented Hut 8 CEO Asher Genoot. “We continue to identify opportunities to work hand-in-hand with energy partners to develop bespoke structures that generate outsized value for every party involved.”
The site is strategically positioned adjacent to a wind farm and seamlessly linked to the ERCOT grid, affording Hut 8 access to some of the most cost-effective wholesale power in North America. According to the company, the location is ideally situated to support high-density compute applications, encompassing Bitcoin mining and artificial intelligence. Data center engineering, procurement, and construction efforts are currently underway.
Upon completion, the agreement is anticipated to elevate Hut 8’s aggregate capacity to approximately 1.3 gigawatts across its portfolio of owned and managed services.
Despite a notable decline in revenue for bitcoin miners following the halving in April, publicly traded miners such as Hut 8, bolstered by robust balance sheets, are seizing market share opportunities resulting from the departure of less efficient miners from the industry.
Hut 8’s stock closed up 6% on Monday at $17.48 and is currently showing a 2% increase in pre-market trading, as per TradingView data. Over the past month, the stock has demonstrated a 65% increase.