Hut 8 Initiates Construction of Cost-Efficient Mining Facility Amid Post-Merger Turmoil
Summary:
Hut 8, a North American digital asset miner, has begun building a 63-megawatt mining facility in Culberson County, Texas. Slated to open in Q2 2024, it features significant mining cost reductions. Amid a controversial merger with US Bitcoin corp and facing accusations of a "pump and dump" scheme, the company plans to continue its expansion with cost-efficient strategies.
North American crypto miner, Hut 8, has initiated constructing its fifth US-based mining facility with a capacity of 63 megawatts in Culberson County, Texas. The facility is projected to open doors and have miners online by the second quarter of 2024. This is made more noteworthy due to the 40% cost savings compared to purchasing ready-made locations. The new site is projected to have 3.6 EH/s of self-mining capacity.
In terms of reduced mining costs, Hut 8 announced plans to mine Bitcoin at costs 30% less than at their other locations in Texas and Nebraska. According to CEO, Asher Genoot, the new facility's setup costs have also experienced significant reductions: The total cost of designing and building the Culberson County site is estimated below $275,000 per MW, a saving of over 40%, or roughly $18,500,000 in upfront expansion costs per each 100 MW. The company achieved cost-efficient steps that include purchasing a new site, building it 40% cheaper than peers, reducing the cost per coin by 30%, and increasing self-mining exahash rates.
In light of troubling circumstances, the merger took place between Canada's Hut 8 and US Bitcoin corp., creating a new entity in December 2023. After the reported $725 million merger, operations resumed under Hut 8, now a U.S.-headquartered corporation based in Miami, Florida. However, expansion efforts coincide with turbulent periods for the company that faces accusations of using Bitcoin for a “pump and dump” scheme by short-selling, levelled by profit-oriented short-selling firm, JCapital Research. In retaliation, Hut 8 has labelled JCapital as a group of biased activists who profit from company share price drops. Adding to the turmoil, the corporation is grappling with several class-action lawsuits concerning claims of misleading statements and failure to disclose key information regarding related parties and overstatements on certain asset profits.
Published At
2/27/2024 9:39:09 PM
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