tl;dr
Hut 8’s stock is surging, but the real story is in the power plants.
When Hut 8 (HUT) announced plans to double its power capacity with four new U.S. sites, the market took notice. Shares jumped 10.49% to $25.91, the highest in seven months, even as Bitcoin hovered below $110,000. The move isn’t ...
Hut 8’s stock is surging, but the real story is in the power plants.
When Hut 8 (HUT) announced plans to double its power capacity with four new U.S. sites, the market took notice. Shares jumped 10.49% to $25.91, the highest in seven months, even as Bitcoin hovered below $110,000. The move isn’t just about mining—it’s about positioning Hut 8 as a titan in digital infrastructure, a sector now as hot as the GPUs powering AI breakthroughs.
The company is building four facilities totaling 1,530 megawatts (MW) across Louisiana, Texas, and Illinois. That’s a lot of power—enough to light up a small city. Two Texas sites under the ERCOT grid will contribute 1,180 MW, while Louisiana’s 300 MW and Illinois’ 50 MW projects are also in the works. These aren’t just numbers; they’re a blueprint for Hut 8’s ambition. By 2025, the company expects to manage over 2.5 gigawatts across 19 locations, with a broader pipeline of 10,620 MW in development.
“This is about securing prime sites that will anchor our next decade of growth,” said CEO Asher Genoot, whose vision is as clear as the Texas sky. The projects, reclassified from “exclusivity” to “development,” mean land and power deals are locked in, and design work is already underway. It’s a calculated move, balancing aggressive expansion with financial discipline.
But how’s Hut 8 funding this? A $2.4 billion liquidity framework, backed by its own Bitcoin holdings and partnerships. The company holds 10,278 bitcoins, worth roughly $1.2 billion, and has secured a $200 million revolving credit line with Two Prime and a $130 million loan from Coinbase. That’s not just a cash infusion—it’s a vote of confidence from the crypto world’s gatekeepers.
The timing is no accident. Demand for data centers and computing power is exploding, driven by AI’s insatiable hunger for processing power. Tech giants are leaning on Bitcoin miners like Hut 8 for infrastructure, a trend that’s reshaping the industry. Earlier this year, Google invested in TeraWulf, another miner, as part of a $3.2 billion AI infrastructure deal. Hut 8’s expansion could make it a key player in this race, with Roth Capital analysts calling the move a “notable step-up” that might revalue the stock once the sites start churning out AI and high-performance computing workloads.
Yet, for all the optimism, Hut 8’s stock still lags far behind its 2021 peak of $79.40, which coincided with Bitcoin’s rally above $64,800. The road to recovery is long, but with 1.5 gigawatts in the pipeline and a $2.4 billion war chest, Hut 8 is betting that the future of digital infrastructure—and the dollars it generates—is just beginning.
As the lights flick on in Louisiana and Texas, one thing is clear: Hut 8 isn’t just mining Bitcoin anymore. It’s building the backbone of the digital age.