Hut 8 Announces Initial ASIC Fleet Upgrade
November 06 2024 - 6:43AM
Hut 8 Corp. (Nasdaq | TSX: HUT) (“Hut 8” or the “Company”), a
leading, vertically integrated operator of large-scale energy
infrastructure and one of North America’s largest Bitcoin miners,
today announced an initial ASIC fleet upgrade with the purchase of
31,145 BITMAIN Antminer S21+ miners. Under the purchase agreement,
Hut 8 will acquire the miners at a price of $15.00 per terahash,
with delivery expected in early Q1 2025.
Hut 8 plans to upgrade 111 MW of self-mining capacity across
existing sites with a focus on optimizing fleet efficiency and
self-mining economics. Upon energization, expected in Q1 2025, the
new miners are expected to increase the Company’s current
self-mining hashrate by ~3.7 EH/s to ~9.3 EH/s, an increase of
~66%, while driving its average fleet efficiency down from 31.7 to
19.9 J/TH, an improvement of ~37%. Alongside the Company’s
previously announced purchase option for ~15 EH/s of hosted
U3S21EXPH ASIC miners at its Vega site, this upgrade creates a path
to ~24 EH/s of self-mining hashrate with an average fleet
efficiency of 15.7 J/TH as early as Q2 2025.
“After extensive modeling, we selected the BITMAIN Antminer S21+
for our initial fleet upgrade due to its strong return profile
relative to higher-efficiency models that require larger capital
outlays,” said Asher Genoot, CEO of Hut 8. “The S21+ offers a
faster payback period than more efficient models across a wide band
of future hashprice scenarios, enabling us to optimize investment
returns and accelerate value creation.”
“Deep, strategic partnerships across the value chain are central
to our approach to building a next-generation energy infrastructure
platform. This purchase builds on our previously announced ~15 EH/s
partnership with BITMAIN to host the U3S21EXPH ASIC miner, and we
look forward to further developing our relationship with BITMAIN
and other partners as we focus on disciplined, creatively
structured growth across Bitcoin mining and AI compute
infrastructure.”
As part of its long-term power-first strategy, Hut 8 continues
to scale its compute layer across energy-intensive technologies,
including both Bitcoin mining and AI compute, with the aim of
maximizing returns on its portfolio of power assets and digital
infrastructure.
About Hut 8
Hut 8 Corp. is an energy infrastructure operator and Bitcoin
miner with self-mining, hosting, managed services, and traditional
data center operations across North America. Headquartered in
Miami, Florida, Hut 8 Corp.’s portfolio comprises twenty sites: ten
Bitcoin mining, hosting, and Managed Services sites in Alberta, New
York, and Texas, five high performance computing data centers in
British Columbia and Ontario, four power generation assets in
Ontario, and one non-operational site in Alberta. For more
information, visit www.hut8.com and follow us on X (formerly known
as Twitter) at @Hut8Corp.
Cautionary Note Regarding Forward–Looking
Information
This press release includes “forward-looking information” and
“forward-looking statements” within the meaning of Canadian
securities laws and United States securities laws, respectively
(collectively, “forward-looking information”). All information,
other than statements of historical facts, included in this press
release that address activities, events or developments that Hut 8
expects or anticipates will or may occur in the future, including
such things as future business strategy, competitive strengths,
goals, expansion and growth of the business, operations, plans and
other such matters is forward-looking information. Forward-looking
information is often identified by the words “may”, “would”,
“could”, “should”, “will”, “intend”, “plan”, “anticipate”, “allow”,
“believe”, “estimate”, “expect”, “predict”, “can”, “might”,
“potential”, “predict”, “is designed to”, “likely” or similar
expressions. Specifically, such forward-looking information
included in this press release includes statements relating to the
execution of the purchase agreement with BITMAIN, including the
expected delivery and energization of the miners and the
anticipated impact to the Company’s self-mining hashrate and
average fleet efficiency, as well as the Company’s focus on
disciplined, creatively structured growth and aim to maximize
returns on its portfolio of power assets and digital
infrastructure.
Statements containing forward-looking information are not
historical facts, but instead represent management's expectations,
estimates and projections regarding future events based on certain
material factors and assumptions at the time the statement was
made. While considered reasonable by Hut 8 as of the date of this
press release, such statements are subject to known and unknown
risks, uncertainties, assumptions and other factors that may cause
the actual results, level of activity, performance or achievements
to be materially different from those expressed or implied by such
forward-looking information, including but not limited to, security
and cybersecurity threats and hacks; malicious actors or botnet
obtaining control of processing power on the Bitcoin network;
further development and acceptance of the Bitcoin network; changes
to Bitcoin mining difficulty; loss or destruction of private keys;
increases in fees for recording transactions in the Blockchain;
erroneous transactions; reliance on a limited number of key
employees; reliance on third party mining pool service providers;
regulatory changes; classification and tax changes; momentum
pricing risk; fraud and failure related to digital asset exchanges;
difficulty in obtaining banking services and financing; difficulty
in obtaining insurance, permits and licenses; internet and power
disruptions; geopolitical events; uncertainty in the development of
cryptographic and algorithmic protocols; uncertainty about the
acceptance or widespread use of digital assets; failure to
anticipate technology innovations; the COVID19 pandemic, climate
change; currency risk; lending risk and recovery of potential
losses; litigation risk; business integration risk; changes in
market demand; changes in network and infrastructure; system
interruption; changes in leasing arrangements; failure to achieve
intended benefits of power purchase agreements; potential for
interrupted delivery, or suspension of the delivery, of energy to
mining sites and other risks related to the digital asset mining
and data center business. For a complete list of the factors that
could affect Hut 8, please see the “Risk Factors” section of Hut
8’s Transition Report on Form 10-K, available under the Company’s
EDGAR profile at www.sec.gov, and Hut 8’s other continuous
disclosure documents which are available under the Company’s SEDAR+
profile at www.sedarplus.ca and EDGAR profile
at www.sec.gov.
Hut 8 Corp. Investor Relations
Sue Ennis
ir@hut8.com
Hut 8 Corp. Media Relations
media@hut8.com
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