Hut 8, a cryptocurrency mining and blockchain infrastructure company, has officially announced the launch of its GPU-as-a-service division. This follows the full deployment of its inaugural GPU cluster for an AI cloud developer.
Rising AI Demand and Hut 8
The high-performance computing cluster is now fully operational at a tier-three data center in Chicago. It includes multiple powerful Hewlett Packard Enterprise (HPE) Cray supercomputers with 1,000 NVIDIA GPUs. Hut 8 worked with HPE and AdvizeX to design, set up, and launch this cluster. The GPU cluster is operated under Highrise AI, Inc., a subsidiary of Hut 8. This move solidifies the company’s strategic focus on diversifying its revenue streams and capitalizing on the growing demand for AI computing power. The AI cloud developer, whose identity remains undisclosed, has entered a five-year agreement with Hut 8. The contract includes fixed infrastructure payments, providing a steady income stream for the company. Furthermore, the contract includes a revenue-sharing component, allowing Hut 8 to benefit from the AI cloud developer’s potential growth.
Hut 8 Expands Operations
Recall that the North American digital asset mining giant constructed a new 63-megawatt mining facility in Texas. This marked the firm’s fifth mining location in the United States and signaled the company’s commitment to strengthening its presence in the digital asset mining landscape. The new facility became operational and online for miners in the second quarter of 2024. Hut 8 will mine Bitcoin at a remarkable 30% lower cost than its existing sites in Texas and Nebraska, enhancing the company’s competitive edge in the dynamic crypto-mining sector.
Tether develops new mining software
In August 2022, Paolo Ardoino, Chief Technology Officer (CTO) of Bitfinex and Tether, announced that Tether’s developers are finalizing new Javascript libraries intended to facilitate the transmission of commands and signals to Bitcoin mining hardware. Some of the hardware confirmed to be compatible with the software includes WhatsMiner, AvalonMiner, and AntMiner. Tether believes proper management of the BTC mining capacity will lead to more efficient completion of operations. According to Ardoino, the design of the new software is 'high-quality, polished, and modular.'
The launch of the GPU-as-a-service division and the expansion of mining operations in Texas affirm Hut 8's strategic direction towards revenue diversification and strengthening its position in the digital asset sector. Developments such as Tether's new software also contribute to innovation in the industry.
