On September 19, Hut 8 announced a major hosting agreement with Bitmain, aiming to generate $125 million annually.
Deal with Bitmain
H.C. Wainwright analysts view this move positively as management shifts to offense and carries out a major deal. Under the deal, Hut 8 will deploy up to 15 exahashes per second of Bitmain’s U3S21EXPH ASIC miners by Q2 2025 at its new Texas-based site.
Technical Details
Mike Colonnese, H.C. Wainwright’s crypto analyst, anticipates this option could lift Hut 8’s self-mining hash rate from 4.7 EH/s to 19.7 EH/s, solidifying the company’s market position. Colonnese highlighted the next-generation miners, featuring direct liquid cooling, are expected to triple computing power compared to existing models, offering a significant efficiency boost.
Financial Prospects
The agreement grants Hut 8 the option to purchase all deployed rigs within six months of activation at a competitive $21 per terahash, allowing the company to scale its self-mining operations.
This partnership provides Hut 8 with stable, recurring revenues from Bitmain while mitigating Bitcoin price volatility. The custom-built data center design, optimized for high-performance computing, will support up to 180 kilowatts per rack, ensuring operational synergies and future cost savings.
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