Hut 8 Starts Construction Of 63MW Crypto Mining Site

Hut 8 is constructing a new 63 megawatt mining plant in Texas making it Hut 8 5th in the US and its expected to be operational by Q2 2024.

Hut 8, a North American digital asset miner has started construction of a new mining plant in Culberson County, Texas with a capacity of 63 megawatts.

This will be the company’s fifth mining location in the United States. The new plant is anticipated to be operational and have miners online by the second quarter of 2024.

Hut 8 Mining Cost Reduction

Following a press release, Hut 8 anticipates of being able to mine Bitcoin at a rates 30% lower than the rates it charges for mining at its other sites in Texas and Nebraska.

“Compared to the benchmark of approximately $460,000 per MW set by recent acquisitions in the area, our all-in cost to design and build the Culberson County site is expected to be less than $275,000 per MW. This represents a savings of more than 40%, or approximately $18,500,000 in upfront development costs per every 100 MW of expansion.

Asher Genoot, the CEO of Hut 8 stated that the costs of establishing the new facility were also significantly lower. In December 2023, the Canadian technology business Hut 8 and the United States-based Bitcoin Corporation merged to form a new corporation.

After the merger, which was believed to have cost $725 million, the firm continued operations as a corporation under the name Hut 8 with its headquarters in Miami, Florida, and its jurisdiction in the United States.

At a time when the company is experiencing a lot of turmoil, The mining company is looking to expand its operations. JCapital Research recently accused the Mining company of short-selling Bitcoin by using a “pump and dump” strategy.

This company asserts on its website that it is primarily concerned with short-selling to make a profit. In a rebuttal, Hut 8 referred to JCapital as a “self-proclaimed group of biased activists who disclose that they will profit if a company’s share price declines.”

Several class-action lawsuits have been filed against the company, alleging that it “made false and misleading statements and failed to disclose that: (i) one of USBTC’s largest shareholders is an undisclosed related party; (ii) USBTC’s core asset has historically failed to provide energy and high-speed internet; and (iii) the profitability of certain USBTC assets was overstated.” The company faces multiple lawsuits.