Bitcoin Miner Hut 8 Expands Its US Presence With a 205 MW Mining Facility in Texas

Bitcoin miner Hut 8 has reached a deal to increase its operational mining power in Texas.

Bitcoin miner Hut 8 has secured a purchase agreement for 205 megawatts of power and land in West Texas to expand its operational mining capacity.

The transaction will increase Hut 8’s energy infrastructure platform to approximately 1.3 gigawatts of capacity, according to a July 9 announcement. The site is situated next to a wind farm and connects to the Electric Reliability Council of Texas (ERCOT), which handles the flow of electric power to about 90% of the state's electric load.

“This is the first time a large data center load has been approved under the complex regulatory framework in this particular market,” said Asher Genoot, Hut 8’s CEO.

The announcement comes after Hut 8 merged with US Bitcoin Corp in December 2023 to form a new entity in a deal valued at $725 million. Since then, the company has been ramping up its presence in the United States.

In February, Hut 8 began construction on a new 63-megawatt mining facility in Culberson County, which is set to deliver 30% lower mining costs compared to the company’s other mining sites in the country.

Bitcoin miners have been taking steps to diversify data center revenue streams and increase their hashrate in response to the recent halving in April, including through mergers, acquisitions, and partnerships.

CleanSpark, for example, recently announced an agreement to acquire five mining facilities in Georgia for a total of $25.8 million, which is expected to add 3.7 exahashes per second (EH/s) in processing power. Across the mining sites, power output ranges from 8 to 15 megawatts for a total of 60 megawatts.

Public Bitcoin mining companies secured $2 billion in equity financing ahead of the revenue cut. Marathon Digital, CleanSpark, and Riot Platforms led the fundraising, holding over $1.33 billion in cash and significant Bitcoin reserves by the end of March.

According to data from CryptoQuant, miners have seen their daily revenues decline by 63% since the halving. Bitcoin is trading at $57,683 at the time of writing, up 3.3% over the last 24 hours and 28.1% year to date.

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