Hut 8 Changes Strategy, Bitcoin Now To Be Used To Fund Growth
Hut 8 Corp (TSX: HUT) has completely abandoned its previous HODL strategy when it comes to bitcoin, announcing this morning a new treasury strategy that will be used to “build balance sheet value.”
Rather than holding all bitcoin the company produces, on a go-forward basis that bitcoin will instead by deployed to fund growth for the company. Bitcoin can now be expected to be sold, optioned out, or used in other strategies to enable the company to increase its scale.
The first instance of the change in strategy was announced this morning, with Hut 8 revealed it has begun construction of a new bitcoin mining facility in Culberson County, Texas. The facility is expected to house up to 3.6 EH/s of capacity, with the firm currently undecided on whether to transition self-mining activity at two other facilities to this site, or to expand its current self-mining fleet.
Bitcoin mining is expected to cost 30% less at the new facility relative to Hut’s facilities in Granbury, Texas, and Kearney, Nebraska.
READ: Hut 8 Replaces CEO With Co-Founder Of US Bitcoin Corp
The company also claims that the Culberson facility will be constructed at a price 40% lower than the current going rate for facility transactions in the area, with construction costing $275,000 per MW, versus the regional transactional average of $460,000 per MW.
The new facility, at 63 MW in size, is expected to be online in the second quarter of 2024.
“Breaking ground at the Culberson County site marks the introduction of Hut 8’s new treasury strategy, which focuses on deploying our stack strategically to grow the business, create shareholder value, and minimize dilution. As we head into the halving, we anticipate that distressed assets will become available at favorable valuations and create opportunities for further growth,” commented Asher Genoot, CEO of Hut 8.
Hut 8 Corp last traded at $12.45 on the TSX.
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