Hut 8, a digital asset miner based in North America, has commenced the construction of a new mining facility in Culberson County, Texas. This marks their fifth mining location in the United States. The facility is expected to be operational in Q2 2024, allowing miners to come online.
In an effort to reduce mining costs, Hut 8 anticipates that they will be able to mine Bitcoin (BTC) at a rate that is 30% lower than their current mining costs at other sites in Texas and Nebraska. Asher Genoot, the CEO of Hut 8, also stated that the expenses associated with setting up the new facility were significantly lower.
Hut 8’s recent expansion comes amidst a challenging period for the company. In December 2023, Hut 8 and US Bitcoin Corp. merged to form a new company. Following the merger, Hut 8 resumed operations as a U.S.-based corporation headquartered in Miami, Florida, with a reported merger value of $725 million.
However, Hut 8 has faced allegations of engaging in a “pump and dump” scheme by JCapital Research, a firm specializing in short-selling for profit. In response, Hut 8 criticized JCapital as a biased group of activists who openly admit to profiting from a decline in a company’s share price.
Furthermore, Hut 8 is currently involved in a class-action lawsuit. The lawsuit alleges that the company made false or misleading statements and failed to disclose certain information, including the fact that one of USBTC’s major shareholders is an undisclosed related party, the historical failure of USBTC’s core asset to provide energy and high-speed internet, and the overstatement of profitability for certain USBTC assets.
Update 12:55 PST 2/27: It has been clarified that only one class-action lawsuit has been filed against Hut 8.