Hut 8 Expands with $2.4B Backing, Stock Jumps 10%
Hut 8 (HUT) has announced plans to build four new data center projects in the U.S., with a total capacity of 1,530 megawatts (MW). These sites will be in Texas, Louisiana, and Illinois.
- Texas: Two sites under the ERCOT grid, adding 1,180 MW
- Louisiana: One site with 300 MW (connected to MISO)
- Illinois: One smaller project with 50 MW (connected to PJM)
The company said it has already secured the land and power agreements, and design work is in progress. Once completed, Hut 8 expects to manage over 2.5 gigawatts across 19 locations. This is part of a bigger plan, with a total development pipeline of 10,620 MW, of which 14% is already in active development.
CEO Asher Genoot said the expansion is key to the company’s long-term growth. Following the news, Hut 8’s shares rose 10.49% to $25.91, though still far below its all-time high of $79.40 in 2021, when Bitcoin hit over $64,800.
Funding the Expansion
To finance the projects, Hut 8 has secured up to $2.4 billion through:
- 10,278 bitcoins (worth about $1.2 billion)
- $200 million credit line from Two Prime
- $130 million loan from Coinbase
- $1 billion equity program
This gives the company flexibility while keeping funding options open.
Why It Matters
The expansion comes as demand for data centers and computing power is growing quickly, driven by AI development. Big tech companies are now partnering with bitcoin miners for infrastructure. For example, Google recently invested in TeraWulf as part of a $3.2 billion AI project.
Roth Capital, an investment bank, said Hut 8’s expansion could significantly boost its stock once the new sites are running and supporting AI and high-performance computing.
