Hut 8 Mining (TSX: HUT) is apparently looking to muddy its once-simple investment thesis. The firm this morning announced that it is semi-stepping into the esports and gaming space via an arrangement with that of Enthusiast Gaming (TSX: EGLX).
The agreement between the two firms appears to have been built around the use of Hut 8 Mining’s recently acquired data centre. Enthusiast’s operations going forward are to be hosted via Hut 8’s data centres. However, Hut 8 will also collaborate with Enthusiast on “new experiences and content” focused around NFTs, crypto, mobile and blockchain gaming, and Web 3.0.
Initially, in addition to the use of Hut 8’s data centres, the partnership will see Hut 8 become a presenting sponsor of Enthusiast’s first person shooter game EV.IO, as well as that of Luminosity Gaming. It’s not clear however why a crypto mining firm requires consumer awareness, or what benefit, specifically, it will provide to the firms operations.
Commenting on the partnership, Hut 8’s CEO Jamie Leverton stated, “As a digital currency miner with data centre infrastructure, we’re ideally positioned to join forces with one of North America’s largest and fastest growing gaming entertainment companies. [..] We’re excited to host Enthusiast Gaming in our data centres and collaborate on new experiences and content that will connect us to their audience of 300 million Gen Z and Millennial viewers, the majority of whom are crypto-savvy.”
Further specifics of the agreement were not provided, with the two firms simply revealing it is a “multi-year partnership.” Financial details were also not provided.
Hut 8 Mining last traded at $7.76 on the TSX.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
