Bitcoin miner Hut 8 enters into agreement for 205-megawatt Texas site

Bitcoin BTC +0.080% miner Hut 8 has entered into a power purchase agreement for a site in West Texas with 205 megawatts of immediately available power capacity and land.

The deal represents the first transaction in Hut 8’s previously announced development pipeline of 1,100 megawatts of exclusive energy capacity.

“This is the first time a large data center load has been approved under the complex regulatory framework in this particular market,” Hut 8 CEO Asher Genoot said. “We continue to identify opportunities to work hand-in-hand with energy partners to develop bespoke structures that generate outsized value for every party involved.”

The site operates adjacent to a wind farm and is connected to the ERCOT grid, providing Hut 8 with access to some of the lowest-cost wholesale power in North America, according to the firm. Hut 8 said the site is well-positioned to support high-density compute applications, including Bitcoin and AI, with data center engineering, procurement and construction efforts now underway.

Once closed, the deal is expected to increase Hut 8’s total capacity to approximately 1.3 gigawatts across its owned and managed services.

Capitalizing on market share opportunities

While bitcoin miners’ revenue has dropped significantly since the halving in April, public miners like Hut 8 with more robust balance sheets are capitalizing on market share opportunities brought about by less efficient miners exiting the industry.

Hut 8’s share price closed up 6% on Monday at $17.48 and is currently up 2% in pre-market trading, according to TradingView. The stock has gained 65% over the past month.

HUT/USD price chart. Image: TradingView .