Following the announcement of a large upgrade to its ASIC mining fleet, Hut 8 Corp. (NASDAQ: HUT) shares are on a notable uptick this morning. The stock value increased 13.26% in pre-market trading to $18.96, building on a 7.58% climb to $16.74 the day before.
Plans for Fleet Improvement and Expansion
To improve its mining capabilities, Hut 8 declared its intention to buy 31,145 BITMAIN Antminer S21+ machines, which cost $15.00 per terahash. This strategic move, part of a broader effort to increase fleet efficiency, is expected to be delivered in early Q1 2025.
Hut 8 intends to improve its hashrate by 66% to around 9.3 exahashes per second (EH/s) following complete deployment by maximizing its 111 MW self-mining capacity. This expansion not only boosts production but also reduces fleet energy consumption, with efficiency gains expected to lower average fleet consumption from 31.7 to 19.9 joules per terahash (J/TH).
A Strategic Alliance with BITMAIN
The collaboration with BITMAIN, which provides the Antminer S21+ devices as part of its continuous infrastructure improvement, is a crucial element of the company’s growth plan. Additionally, Hut 8 holds a purchase option for approximately 15 EH/s of hosted U3S21EXPH ASIC miners, enabling a potential path to reach 24 EH/s by Q2 2025.
Long-term Vision for Power-Driven Growth
In line with its “power-first” strategy, Hut 8 continues to scale its operations across high-demand, energy-intensive sectors, including Bitcoin mining and AI compute. This approach seeks to optimize returns on the company’s power assets, driving long-term value through a diversified digital infrastructure portfolio.
By focusing on high-efficiency equipment with faster payback periods, Hut 8 enhances investment returns while fostering sustainable growth across its platforms. Its comprehensive upgrade and strategic partnerships mark a decisive move in its mission to lead in Bitcoin mining and AI compute, bolstering its energy infrastructure and positioning it for future growth in digital asset management and energy-driven technologies.