Hut 8 Corp. is taking bold strides in the energy infrastructure sector, unveiling plans for four new development sites across the United States. This expansion aims to solidify Hut 8's position amidst increasing demand for energy-intensive solutions, further extending its reach in strategic markets.
Upon the completion of these sites, Hut 8 anticipates its platform will surpass a capacity of 2.5 gigawatts over 19 locations. A pivotal part of this development includes reclassifying 1,530 megawatts (MW) of capacity from a 'Capacity Under Exclusivity' category to 'Capacity Under Development'.
Asher Genoot, CEO of Hut 8 said, “By advancing more than 1.5 gigawatts of capacity from exclusivity into development, we position ourselves to more than double the scale of our platform and address accelerating demand across energy-intensive use cases. In addition to driving scale, this expansion is designed to broaden our geographic footprint..."
The new sites boast capacities ranging from 50 MW to a substantial 1,000 MW, each strategically chosen for swift access to power. Hut 8’s pioneering approach promotes rapid, capital-efficient deployment tailored to diverse customer demands using cutting-edge architecture.
With this initiative, Hut 8 introduces a fresh milestone termed 'Capacity Under Development' within its framework. This designation marks projects that have evolved beyond exclusivity, wherein Hut 8 dedicates resources towards site development, infrastructure enhancement, and strategic customer engagement, transitioning these sites to 'Capacity Under Management' upon commercialisation.
The expansion will be backed by methodical capital management. Hut 8 boasts liquidity of up to $2.4 billion, including cash reserves, Bitcoin, credit facilities, and an at-the-market (ATM) equity initiative. This financial backbone comprises:
- Strategic reserve assets: Over 10,000 Bitcoins valued at approximately $1.2 billion, serving as a liquid base for loans and generating yield.
- Non-dilutive growth capital: A $200 million revolving credit facility in partnership with Two Prime, alongside a repriced $130 million credit facility with Coinbase, yielding $330 million liquidity at an 8.4% weighted capital cost.
- Equity flexibility: A new $1 billion ATM equity program, recently launched, reinforcing the company's rigorous stance on equity issuance.
- Project-level financing: Interest from banking partners keen on financing specific data centre projects.
The robust financial structure aims to lessen execution risks and maximise value creation, empowering Hut 8 to deliver efficiently to its customers. As the company embarks on this large-scale venture, its financial strategy underscores a commitment to long-term growth, operational excellence, and market expansion.
