Source: Investing Posted 06/11/2024, 14:51
MIAMI – Hut 8 Corp. (NASDAQ: HUT), a leader in bitcoin mining in North America, has revealed plans to significantly upgrade its ASIC mining fleet by purchasing 31,145 BITMAIN Antminer S21+ mining rigs. The acquisition was priced at $15.00 per terahash and is scheduled for delivery in the early first quarter of 2025.
with the aim of enhancing the company’s self-mining capacity and efficiency. Upon activation, expected in the first quarter of 2025, Hut 8’s self-mining hash rate is expected to increase by about 66%.
from the current 5.6 EH/s to about 9.3 EH/s. This upgrade also aims to improve fleet average efficiency from 31.7 to 19.9 joules per terrahash (J/TH).
representing an improvement of approximately 37%.
This strategic move is part of a broader plan that includes a previously announced purchase option for approximately 15 EH/s of ASIC U3S21EXPH mining hardware hosted at Hut 8’s Vega site. Together, these initiatives could push the company’s self-mining hash rate to nearly 24 EH/s with an average fleet efficiency of 15.7 J/TH as early as the second quarter of 2025.
Asher Genot, CEO of Hut 8, explained the decision to choose BITMAIN Antminer S21+ for the initial fleet upgrade.
citing a favorable yield profile and a faster payback period compared to higher-efficiency models. The company’s selection was based on extensive modeling across different scenarios for future retail prices.
with the aim of improving investment returns and accelerating value creation. Hut 8’s long-term strategy focuses on scaling the computing layer across energy-intensive technologies, including Bitcoin mining and AI computing. The goal is to maximize returns on the company’s energy asset portfolio and digital infrastructure. The company operates a diversified portfolio of locations across North America.
including Bitcoin mining, hosting, managed services, and traditional data center operations.
This announcement, based on a press release, underscores Hut 8’s commitment to disciplined growth and strategic partnerships in the digital asset mining and energy infrastructure sectors. A company’s forward-looking statements depend on many factors, including regulatory changes, technological advances, and market demand.
which can affect expected results. Hut 8 Mining Corp. Great progress despite the challenging environment in the Bitcoin mining industry. Several companies, including Benchmark, Needham, and H.C. Wainwright, maintained Hut 8’s “buy” rating. Benchmark set a target of $17.00, Needham raised its target to $16.50, and H.C. Wainwright set its target at $13.50.
These ratings reflect the company’s recent expansion efforts in the Bitcoin mining and artificial intelligence sectors. Hut 8 has expanded its computing layer, a development that is expected to boost its operational performance. The company also struck a promising deal with Bitmain, which is expected to generate about $125 million in annual revenue. However, Hut 8 reported a significant net loss of $71.9 million in second-quarter 2024 results, despite a 72% year-on-year increase in revenue, to $35.2 million. The company also plans to upgrade its ASIC fleet and is exploring AI computing opportunities as part of its strategic growth efforts. These are the latest developments of Hut 8 Mining Corp.
Hut 8 Corp’s ambitious fleet upgrade is in line with its recent strong financial performance and market position. According to investing data, the company showed impressive growth with a 261.59% increase in quarterly revenue as of the second quarter of 2024.
This significant revenue growth supports the Hut 8’s ability to invest in large infrastructure upgrades such as the planned purchase of ASIC mining hardware.
The company’s strategic steps are reflected in its performance in the market.
with investing data showing a strong overall price return of 89.15% over the past six months. This positive trend indicates investor confidence in Hut 8’s expansion strategy and potential to take advantage of the evolving cryptocurrency mining landscape. One of Investing’s advice is that analysts expect sales growth this year.
which is in line with the company’s plans to significantly increase its mining capacity. This projected growth could further boost Hut 8’s market position and financial prospects.
