Hut 8 Stock Rises 10% Following Announcement of 1.5GW Expansion Plans
Hut 8 (HUT), a bitcoin mining and energy infrastructure firm, plans to double its power capacity by developing four new sites in the U.S., which will add over 1.5 gigawatts (GW) to its total, reaching more than 2.5 GW across 19 locations.
The company’s stock increased by over 10%, approaching $26 per share, despite bitcoin prices remaining below $110,000.
Key points include:
- Renewed investor interest in data center firms due to rising demand for computing power.
- Google acquired a minority stake in bitcoin miner TeraWulf as part of a $3.2 billion AI infrastructure deal.
- Hut 8 has shifted project classification from "exclusivity" to "development," securing land and power deals.
- To finance projects, Hut 8 plans to access up to $2.4 billion through various means, including borrowing against its 10,000 BTC holdings valued at about $1.1 billion.
- Investment bank Roth Capital sees potential for a significant stock re-rating as new sites become operational.