Hut 8 is significantly expanding its infrastructure thanks to a new power purchase agreement (PPA). This deal grants Hut 8 exclusive access to 205 megawatts of power and land in West Texas.
According to a company press release, when completed, the agreement would to boost its total energy infrastructure capacity to 1.3 gigawatts.
The site operates adjacent to a wind farm and is connected to the ERCOT grid, according to the firm, and it provides it with access to some of the lowest-cost wholesale power in North America.
Financial details and other parties involved in the agreement haven’t been disclosed. However, the deal is subject to standard conditions being met.
Hut 8 also said the agreement is the first step in Hut 8’s plan to secure 1,100 megawatts of exclusive energy capacity.
Hut 8’s CEO, Asher Genoot, highlighted the deal’s significance, stating it’s the first time such a large data centre load has been approved within the complex regulatory framework of the specific market. Genoot He credits the company’s development team for their expertise in negotiating a deal that addresses the various commercial, legal, and regulatory needs of all parties involved.
Meanwhile, this development follows Hut 8 securing $150 million in strategic funding from Coatue in June 2024. The funding aims to fuel Hut 8’s expansion into the artificial intelligence (AI) infrastructure market and solidify its position as an industry leader. The Bitcoin miner will access the funding through convertible notes with an annual interest rate of 8%.
The cryptocurrency mining sector in the US has seen significant growth in 2024, with major players actively expanding their operations. In June 2024, Bitdeer signed a 30-year lease agreement with the Monroe County Port Authority in Ohio. This agreement adds 570 megawatts of power capacity to Btider’s Bitcoin mining capabilities.
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