Home CryptocurrencyBitcoin Hut 8 begins construction of 63 MW crypto mining site in Texas

Hut 8 begins construction of 63 MW crypto mining site in Texas

by SuperiorInvest

North American digital asset miner Hut 8 has begun construction on a new 63-megawatt mining facility in Culberson County, Texas, its fifth US mining location.

The new facility is expected to be operational for online miners in the second quarter of 2024.

Mining cost reductions

According to a press release, Hut 8 hopes to be able to mine Bitcoin at rates 30% lower than the cost of mining at its other sites in Texas and Nebraska.

According to Hut 8 CEO Asher Genoot, installation costs for the new facility were also substantially lower:

“Compared to the benchmark of approximately $460,000 per MW set by recent acquisitions in the area, our total cost to design and build the Culberson County site is expected to be less than $275,000 per MW. This represents a savings of more than 40%, or approximately $18,500,000 in initial development costs per 100 MW of expansion.

USBTC merger and business upheaval

As Cointelegraph recently reported, Canada-based Hut 8 and Bitcoin corp. formed a new company via merger in December 2023. Following the reported $725 million merger, the company resumed operations under the name Hut 8 as a US-domiciled corporation headquartered in Miami, Florida.

Hut 8's efforts to expand come at a tumultuous time for the company. Recently, JCapital Research, a company that claims on its website to focus on for-profit short selling, accused it of “pumping and dumping” Bitcoin short selling.

In response, Hut 8 called JCapital a “self-proclaimed group of biased activists who clearly reveal that they will profit if a company's share price goes down.”

Related: Hut 8 CEO resigns just weeks after short-seller allegations

The company is also embroiled in numerous class action lawsuits related to allegations that it “made false and/or misleading statements and/or failed to disclose that: (i) one of USBTC's largest shareholders is an undisclosed related party; (ii) USBTC's core asset has historically not provided power or high-speed Internet; and (iii) the profitability of certain USBTC assets was overestimated.”

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