Hut 8 optimizes self-mining operations as miners come online at Salt Creek

Rhea-AI Summary

Hut 8 Corp. announces the energization of one third of its 63 MW site in Culberson County, Texas, with a cost to mine a Bitcoin expected to be 30% lower than at hosted facilities due to a favorable energy profile. The company relocated efficient miners to the new site and deployed proprietary energy curtailment software to optimize operations and reduce energy costs.

Positive

• Energization of one third of the 63 MW site in Culberson County, Texas, known as Salt Creek.
• Cost to mine a Bitcoin at the site expected to be 30% lower than at hosted facilities due to a favorable energy profile.
• Relocation of efficient miners from Kearney and Granbury to Salt Creek to enable rapid energization of the new site.
• Deployment of Reactor, proprietary energy curtailment software, to automate site operations and reduce energy costs.
• Expected all-in cost of $275,000 per megawatt or less, representing a 40% savings versus recent acquisitions in the area.

Negative

• None.

Greenfield site energized in 78 days, less than three months after breaking ground

Cost to mine a Bitcoin at site expected to be 30% lower than cost at hosted facilities due to favorable energy profile

MIAMI, April 16, 2024 (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 announced the energization of one third of its 63 MW site in Culberson County, Texas (“Salt Creek”). Hut 8 is phasing energization to maximize deployed hashrate pre-halving and will continue to energize the site in the coming weeks.

“With Salt Creek, we gain critical control over our miner fleet and operating costs as we head into the halving,” said Asher Genoot, CEO of Hut 8. “Our outlook on energy prices at the site suggests that the potential for cost savings relative to our cost of mining at Kearney and Granbury is in line with the 30% reduction initially projected.”

As previously announced, Hut 8 relocated a portion of its most efficient hosted miners from Kearney and Granbury to Salt Creek in March to enable rapid energization of the new site. Hut 8 has deployed Reactor, its proprietary energy curtailment software, to automate site operations, ensure that miners hash when profitable, and reduce the site’s realized cost of energy.

“I am incredibly proud of our team for delivering a standard-setting performance at Salt Creek,” said Genoot. “What we have achieved in 78 days, including the removal of more than 25,000 miners from Kearney and Granbury in eight days, is a testament to our market-leading capabilities, work ethic, and ability to execute. We remain on track to deliver an incredibly cost-effective buildout: Our expected all-in cost of $275,000 per megawatt or less represents a 40% savings versus recent acquisitions in the area. As demonstrated with Salt Creek, we will continue to act decisively to strengthen and grow our self-mining business.”

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 eighteen sites: nine Bitcoin mining, hosting, and Managed Services sites in Alberta, New York, Nebraska, and Texas, five high performance computing data centers in British Columbia and Ontario, and four power generation assets in Ontario. 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 statements relating to the buildout of Salt Creek, 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.

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, 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 the Company’s mining sites, and other risks related to the digital asset and data center business. For a complete list of the factors that could affect the Company, please see the “Risk Factors” section of the Company’s Transition Report on Form 10-K for the transition period from July 1, 2023 to December 31, 2023, 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 under the Company’s EDGAR profile at www.sec.gov.

Contacts

Hut 8 Investor Relations

Sue Ennis
sue@hut8.io

Hut 8 Media Relations

Eoin Fay
eoin.fay@hut8.io

FAQ

What is the name of the company mentioned in the press release?

Hut 8 Corp.

Where is the new site located?

Culberson County, Texas.

What is the expected cost savings for mining a Bitcoin at the new site compared to hosted facilities?

30% lower due to a favorable energy profile.

What proprietary software did Hut 8 deploy to optimize site operations?

Reactor, their energy curtailment software.

What is the expected all-in cost per megawatt at the new site?

$275,000 or less, representing a 40% savings versus recent acquisitions in the area.