2024

Bitcoin

when

North American digital asset miner Hut 8 has begun construction on a new 63-megawatt mining facility in Culberson County, Texas, its fifth United States mining location.&nbsp;
The new facility is expected to be open for business with miners online by Q2 2024. 
<blockquote class="twitter-tweet">
 It’s a great day to build, esp. when it’s at a 40% savings over buying turnkey sites! Construction is underway at our newest site in Culberson County, TX: expected to come online in Q2, the 63 MW site is expected to have up to 3.6 EH/s of self-mining capacity. More info in our… <a href="https://t.co/LEG347mrEu">pic.twitter.com/LEG347mrEu</a>— Hut 8 (@Hut8Corp) <a href="https://twitter.com/Hut8Corp/status/1762458733391618287?ref_src=twsrc%5Etfw">February 27, 2024</a>
</blockquote> 
<h2 data-ct-non-breakable="true" id="mining-cost-reductions">Mining cost reductions</h2>
According to a press release, Hut 8 <a href="https://finance.yahoo.com/news/hut-8-commences-construction-digital-113000087.html" target="_blank" rel="noopener nofollow">expects</a> to be able to mine Bitcoin (<a href="https://cointelegraph.com/bitcoin-price">BTC</a>) at 30% lower rates than its cost to mine at its other sites in Texas and Nebraska. 
Per Hut 8 CEO Asher Genoot, the costs of setting up the new facility were substantially lower as well:
<blockquote>
 “Compared to the benchmark of approximately $460,000 per MW set by recent acquisitions in the area, our all-in cost to design and build the Culberson County site is expected to be less than $275,000 per MW. This represents a savings of more than 40%, or approximately $18,500,000 in upfront development costs per every 100 MW of expansion. 
</blockquote>
<blockquote class="twitter-tweet">
 Step 1:Buy a new site Step 2:Build site for 40% cheaper than your peers (&amp; cheaper than the last site you built sold for) Step 3:Reduce cost per coin by 30% Step 4:Increase self mining exahash Step 5:Rinse &amp; repeat <a href="https://twitter.com/hashtag/Bitcoin?src=hash&amp;ref_src=twsrc%5Etfw">#Bitcoin</a> <a href="https://twitter.com/hashtag/BitcoinMining?src=hash&amp;ref_src=twsrc%5Etfw">#BitcoinMining</a> <a href="https://twitter.com/search?q=%24HUT&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$HUT</a> …— Sue Ennis (@bigsuey) <a href="https://twitter.com/bigsuey/status/1762446810407149767?ref_src=twsrc%5Etfw">February 27, 2024</a>
</blockquote> 
<h2 data-ct-non-breakable="true" id="usbtc-merger-and-company-turmoil">USBTC merger and company turmoil</h2>
As Cointelegraph recently reported, Canada-based Hut 8 and US Bitcoin Corp. <a href="https://cointelegraph.com/news/hut8-mining-u-s-domiciled-entity-usbtc-merger">formed a new company</a> via a merger in December 2023. After the reported $725 million merger, the company resumed operations under the name Hut 8 as a U.S.-domiciled corporation headquartered in Miami, Florida. 
Hut 8’s efforts toward expansion come at a tumultuous time for the company. It was recently&nbsp;<a href="https://cointelegraph.com/news/bitcoin-miner-hut8-share-price-jcapital-research-report-short-selling">accused of a “pump and dump”</a>&nbsp;by JCapital Research, a firm claiming on its website to have a focus on short-selling for profit.
In response, Hut 8 called JCapital a “self-proclaimed group of biased activists who clearly disclose that they will profit if a company’s share price declines.” 
Related:&nbsp;<a href="https://cointelegraph.com/news/hut8-ceo-resign-pump-and-dump-short-seller-allegation">Hut 8 CEO steps down just weeks after short seller accusations</a>
The company also finds itself <a href="https://www.globenewswire.com/news-release/2024/02/26/2835334/0/en/HUT-NEWS-Johnson-Fistel-Encourages-Hut-8-Corp-Investors-to-Seek-Counsel-Before-Lead-Plaintiff-Class-Action-Deadline.html#:~:text=The%20Hut%208%20class%20action%20lawsuit%20alleges%20that,the%20profitability%20of%20certain%20USBTC%20assets%20were%20overstated." target="_blank" rel="noopener nofollow">embroiled</a> in a class-action lawsuit concerning allegations that it “made false and/or misleading statements and/or failed to disclose that: (i) one of USBTC’s largest shareholders is an undisclosed related party; (ii) USBTC’s core asset has historically failed to provide energy and high-speed internet; and (iii) the profitability of certain USBTC assets were overstated.”
Update 12:55 PST 2/27: The article was changed to reflect only a single class action suit had been filed again&nbsp;

Hut 8 begins construction on 63MW crypto mining site in Texas

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