In a February 27 report, the American-based crypto-miner Hut 8 officially launched the construction of a new mining facility in Culberson, Texas. The Hut 8 team confirmed that the new mining site will generate 63 megawatts that will be directed toward improving the efficiency of Bitcoin mining.
According to the report the Hut 8 team expects the new site to begin operation in Q2 of 2024. The primary objective of launching the Texas mining site is to support the Hut 8 team to maximize mining output.
Hut 8 Constructing New Mining Site
Also, the new mining facility will allow the Hut 8 team to expand its mining fleet from Granbury, Texas, and Kearney, Nebraska, to the new site. For years, the Hut 8 team has been investing in integrating high-performance computing machinery to support self-mining activities.
With advanced mining machinery the Hut 8 team expects the new mining site to generate 3.6EH/s self-mining activities if the Bitcoin miner deploys the existing tools. To ensure the Texas mining site attained the intended purpose, the Hut 8 team engaged in an extensive assessment to analyze the power consumption at the new site.
According to the report, the Hut 8 team noted that the cost of mining BTC at Culberson County was 30% cheaper than Granbury and Kearney. An announcement conveyed by the chief executive of Hut 8, Asher Genoot, stated that the new mining site will propel Hut 8 to operate on excellence.
The CEO recognized the commendable work done by the Hut 8 in-house team in building a cost-effective mining facility. As earlier projected, the Hut 8 team estimated that the cost of establishing the new mining site would amount to $460,000 per MW.
After analyzing the cost, the Hut 8 development team identifies areas that will reduce the cost of constructing the new mining site. They project that with the new budget, all the costs for designing and constructing the new mining site will amount to $275,000 per MW. This implies that the Hut8 team will save 40% of the construction cost.
Hut 8 Prepares for 2024 Bitcoin Halving
The CEO confirmed the groundbreaking event at Culberson marked a significant milestone for Hut 8 to introduce 8’s treasury strategy.
This strategy will assist the Bitcoin miners in increasing the shareholder’s value and improving the profitability of the company. The executive stated that the establishment of the new mining site came ahead of the long-awaited Bitcoin halving.
Ferrante believes that the upcoming Bitcoin halving will be favorable for the crypto miners. Apart from establishing the new mining site, the Hut 8 team will implement a new treasury strategy that allows the miner to utilize its Bitcoin holdings to stimulate the growth of the company.
Bitcoin Miners Devise New Approach for Cutting Cost
The Hut 8 team explained that the new treasury strategy would allow the firm to utilize the BTC held in reserve to create a balance sheet value and foster company growth.
The report stated that the amount of Bitcoin held on reserve will be obtained from direct sales and other sources. This strategy will assist the Hut 8 team in executing its core businesses, such as increasing the operation capability.
The Bitcoin miner will leverage the treasury strategy to reduce the operation cost for mining BTC. In the report, the Hut 8 team underlined that the treasury strategy will finance its capital expenditure for the new mining site.
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