Hut 8 Operations Update for December 2024
Rhea-AI Summary
Hut 8 Corp released its December 2024 operations update, highlighting significant developments in its mining infrastructure. The company expects to begin miner shipments in January, aiming to reduce average fleet efficiency to 19.9 joules per terahash. The 205 MW Vega project is progressing on schedule for Q2 2025 energization.
Key operational metrics for December 2024 include: total energy capacity under management of 665 MW, 121.4K total deployed miners, and 13.2 EH/s total hashrate. The company produced 89 Bitcoin and holds 10,171 BTC in reserve. The company completed the transition of operations at Ionic Digital's Texas sites and is advancing AI data center development opportunities.
The Vega site implementation will feature rack-based Tier I data center architecture with direct-to-chip liquid cooling, targeting up to 200 kilowatts per rack. This could enable approximately 24 exahash per second of self-mining hashrate with an average fleet efficiency of 15.7 joules per terahash by Q2 2025.
Positive
- Vega project on track for Q2 2025 energization with 205 MW capacity
- Infrastructure upgrades progressing to improve fleet efficiency to 19.9 J/TH
- Potential to achieve 24 EH/s of self-mining hashrate by Q2 2025
- Holds 10,171 BTC in reserve
- Total hashrate under management increased to 13.2 EH/s from 21.0 EH/s in previous month
Negative
- Monthly Bitcoin production decreased to 89 BTC from 94 BTC in November
- 968 Bitcoin pledged and transferred to third-party wallet for fleet upgrade financing
- Temporary offline periods for current fleet during infrastructure enhancements
- Termination of Ionic Digital managed services agreement effective December 10, 2024
News Market Reaction 1 Alert
On the day this news was published, HUT declined 5.43%, reflecting a notable negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
Miner shipments expected to begin in January, marking key step in driving average fleet efficiency down to 19.9 J/TH
205 MW Vega project advancing on track for Q2 2025 energization
MIAMI, Jan. 07, 2025 (GLOBE NEWSWIRE) -- 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 released its operations update for December 2024.
“Site infrastructure upgrades continue to advance on schedule, positioning us well to launch our initial fleet upgrade in Q1 2025,” said Asher Genoot, CEO of Hut 8. “With miner production underway, we anticipate shipments to begin in January—a key step in driving our average fleet efficiency down to an expected 19.9 joules per terahash. To optimize miner performance, we continue to take tranches of our current fleet offline to complete infrastructure enhancements at our sites.”
“As we look to the future, we continue to focus on high-impact projects in both AI and Bitcoin mining. This includes a pipeline of several large-scale AI data center developments at various stages of exploration and development, as well as our 205-megawatt Vega site, where we expect to implement our rack-based Tier I data center architecture to power ASIC compute with direct-to-chip liquid cooling at densities of up to 200 kilowatts per rack. This project creates a path to approximately 24 exahash per second of self-mining hashrate with an average fleet efficiency of 15.7 joules per terahash as early as Q2 2025 assuming we exercise our purchase option for hosted machines at the site.”
Highlights
- Construction at Vega advancing on track for energization in Q2 2025 (image to left)
- Upgrading infrastructure at existing sites to prepare for delivery of new miners
- Completed transition of operations at Ionic Digital’s sites in Texas
- Progressed AI data center development opportunities across development pipeline
Operating Metrics
| Average during the period unless otherwise noted1 | December 2024 | November 2024 |
| Total energy capacity under management (mining)2,3,4 | 665 MW | 967 MW |
| Total deployed miners under management5 | 121.4K | 201.1K |
| Total hashrate under management6 | 13.2 EH/s | 21.0 EH/s |
| Self-Mining7 | ||
| Deployed miners8,9 | 53.2K | 56.2K |
| Deployed hashrate10 | 5.5 EH/s | 5.7 EH/s |
| Bitcoin produced3,11 | 89 BTC | 94 BTC |
| Bitcoin held in reserve3 | 10,171 BTC12 | 9,122 BTC |
| Managed Services13 | ||
| Energy capacity under management3 | 280 MW | 582 MW |
| Deployed miners under management9 | 85.5K | 155.8K |
| Hashrate under management | 9.4 EH/s | 16.4 EH/s |
| Hosting | ||
| Deployed miners under management9,14 | 68.2K | 75.2K |
| Hashrate under management15 | 7.7 EH/s | 8.4 EH/s |
Energy Infrastructure Platform3
| Current/Contracted Revenue Stream(s)16 | ||||||||
| Site | Location | Owner17 | Power Capacity | Self- Mining | Managed Services | Hosting | HPC | Power Sales |
| Vega18 | Texas Panhandle | Hut 8 | 205 MW | Yes19 | ||||
| Medicine Hat | Medicine Hat, AB | Hut 8 | 67 MW | Yes | ||||
| Salt Creek | Orla, TX | Hut 8 | 63 MW | Yes | ||||
| Alpha | Niagara Falls, NY | Hut 8 | 50 MW | Yes | Yes | |||
| Drumheller20 | Drumheller, AB | Hut 8 | 42 MW | |||||
| Kelowna | Kelowna, BC | Hut 8 | 1.1 MW | Yes | ||||
| Mississauga | Mississauga, ON | Hut 8 | 0.9 MW | Yes | ||||
| Vaughan | Vaughan, ON | Hut 8 | 0.6 MW | Yes | ||||
| Vancouver II | Vancouver, BC | Hut 8 | 0.5 MW | Yes | ||||
| Vancouver I | Vancouver, BC | Hut 8 | 0.3 MW | Yes | ||||
| King Mountain21 | McCamey, TX | Hut 8 (JV) | 280 MW | Yes | Yes | Yes | Yes | |
| Iroquois Falls22 | Iroquois Falls, ON | Hut 8 (JV) | 120 MW | Yes | ||||
| Kingston22 | Kingston, ON | Hut 8 (JV) | 110 MW | Yes | ||||
| North Bay22 | North Bay, ON | Hut 8 (JV) | 40 MW | Yes | ||||
| Kapuskasing22 | Kapuskasing, ON | Hut 8 (JV) | 40 MW | Yes | ||||
| Total | 1,020 MW | |||||||
Upcoming Conferences & Events
- January 9–17, 2025: 27th Annual Needham Growth Conference, New York City
- January 19–22, 2025: Pacific Telecommunications Council PTC’25, Honolulu
- February 24–25, 2025: Capacity Media Metro Connect USA, Fort Lauderdale
- February 25–27, 2025: Infocast ERCOT Market Summit, Austin
Notes:
| (1) | All December figures exclude Hut 8’s managed services agreement with Ionic Digital Inc. (“Ionic”), which was terminated effective December 10, 2024. |
| (2) | Energy capacity under management (mining) includes (i) 180 MW of self-mining sites comprised of Alpha, Medicine Hat, and Salt Creek, (ii) 205 MW of hosting capacity at Vega, which is currently under construction, (iii) 280 MW of capacity under management at King Mountain and (iv) for November 2024 only, 302 MW from Hut 8’s managed services agreement with Ionic, which was terminated effective December 10, 2024, assuming full 215 MW of capacity at Cedarvale, which was first energized in April 2024. |
| (3) | As of the end of the period. |
| (4) | Includes 205 MW of capacity at Vega as the site is expected to host miners for BITMAIN. |
| (5) | Includes all miners that are racked with power and networking, rounded to the nearest 100, in Self-Mining, Managed Services, and Hosting infrastructure with power and networking, including all miners at the King Mountain site. |
| (6) | Includes all Self-Mining, Managed Services, and Hosting hashrate, including |
| (7) | Self-Mining operations for Hut 8 include |
| (8) | Deployed miners are defined as those physically racked with power and networking, rounded to the nearest 100; deployed self-mining miners net of the |
| (9) | Miners are rounded to the nearest 100. |
| (10) | Indicates the target hashrate of all deployed miners; deployed self-mining hashrate net of the |
| (11) | Bitcoin produced net of the |
| (12) | Includes 968 Bitcoin pledged and transferred to a third-party wallet to finance Hut’s previously announced fleet upgrade. |
| (13) | Managed services include (i) 280 MW of capacity under management at King Mountain and (ii) for November 2024 only, 302 MW from Hut 8’s managed services agreement with Ionic, which was terminated effective December 10, 2024, assuming the full 215 MW of capacity at Cedarvale, which was first energized in April 2024. |
| (14) | 34.1K deployed miners under management net of the |
| (15) | 3.8 EH/s under management net of Hut 8’s joint venture partner’s |
| (16) | Reflects revenue sources to Hut 8, its subsidiaries, and/or joint ventures in which they participate. |
| (17) | Owned denotes ownership of power infrastructure at owned or leased data center locations, except for HPC sites where owned denotes ownership of mechanical and electrical infrastructure at leased data center locations. |
| (18) | Site is currently under development. |
| (19) | Anticipated to begin generating revenue by Q2 2025. |
| (20) | Site currently shut down; Hut 8 maintaining lease with option value of re-energizing site. |
| (21) | Owned by a JV between Hut 8 and a Fortune 200 renewable energy producer in which Hut 8 has an approximately |
| (22) | Owned by a JV between Hut 8 and Macquarie in which Hut 8 has an approximately |
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. has a portfolio comprising fifteen sites: five 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 timing of the Company’s planned initial fleet upgrade and expected resulting performance gains, the Company’s focus on high-impact projects in both AI and Bitcoin mining, the timing for the buildout and energization of the Company’s Vega site, and the Company’s continuing progress with respect to AI data center development opportunities across its development pipeline.
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
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/8d3d3de2-641c-4c62-bf62-4baf42f09e4b
FAQ
What is Hut 8's expected mining efficiency improvement target for Q1 2025?
How many Bitcoin did Hut 8 mine in December 2024?
What is the capacity and timeline for Hut 8's Vega project?
How many Bitcoin does Hut 8 hold in reserve as of December 2024?
What is Hut 8's total deployed miners and hashrate under management in December 2024?
