Bitcoin Miner Hut 8 to Expand 205 MW in West Texas

U.S. bitcoin mining and data center operator Hut 8 (NASDAQ: HUT) is expanding its power capacity in West Texas by an additional 205 megawatts (MW).

The company announced on Tuesday that it has signed a power purchase agreement to access 205 megawatts of immediately available power capacity and land in West Texas, adjacent to a wind farm and connected to ERCOT. The site includes an existing and operational substation. Hut 8 said engineering and construction efforts for a new data center are already underway.

It is not yet clear whether the site will be used for bitcoin mining or high-performance computing, as the company stated it is still “finalizing a commercialization plan.”

This infrastructure expansion follows a $150 million investment secured from New York-based hedge fund manager Coatue Management through the issuance of a convertible note. According to a filing on Monday, Coatue has become a beneficial owner of Hut 8, holding a 9.2% stake in the company.

Hut 8 is among a number of public mining companies whose stock prices have gained momentum following the halving and news of business expansions into the AI and HPC space.

Over the past month, Hut 8’s share price has increased by around 80%, outperforming most of its public peers and bitcoin itself.