Bitcoin News Today: Hut 8 Pivots From Bitcoin to AI Powerhouse With $2.5 Billion Bet

Hut 8, a leading publicly traded Bitcoin mining and energy infrastructure firm, has announced plans to expand its power capacity by more than 1.5 gigawatts (GW) through the development of four new U.S. sites. This expansion brings its total power capacity to over 2.5 GW across 19 locations. The company’s stock surged more than 10% in response, reaching a seven-month high. The move is part of a broader strategy to address rising demand for energy-intensive computing power, particularly for artificial intelligence (AI) applications. CEO Asher Genoot emphasized that the expansion positions Hut 8 to become one of the largest energy and digital infrastructure platforms globally. The new sites, ranging from 50 MW in Illinois to a 1,000 MW project in Texas, are currently in the development phase, with land and power agreements already secured. These projects will transition to the "Capacity Under Management" category once commercialized [6].

To fund the expansion, Hut 8 has secured a liquidity base totaling up to $2.4 billion. This includes leveraging its Bitcoin reserves, which are currently valued at approximately $1.1 billion, as well as a $200 million revolving credit line and an expanded $130 million facility from Coinbase. Additionally, the company has launched a $1 billion at-the-market equity offering program to further support its infrastructure growth. This financing strategy reflects the company’s confidence in its long-term capital structure and ability to scale operations while maintaining financial flexibility. The company also plans to explore project-level financing from banking partners to complement its existing funding sources [7]. Hut 8 has previously used similar ATM programs to raise capital, having raised $300 million from a prior $500 million offering in 2024 before terminating it early. The new $1 billion program is expected to provide additional flexibility as the firm continues to invest in high-performance computing (HPC) and AI infrastructure [3].

The expansion aligns with broader industry trends as data center and AI infrastructure firms attract renewed investor interest amid surging demand for computing power. Hut 8’s strategic pivot toward AI services and HPC is seen as a hedge against the volatility of Bitcoin mining. The company has already begun constructing a $2.5 billion AI data center in Louisiana, which will include two 450,000-square-foot buildings. The first phase is expected to be completed by the end of 2025, with the second following before 2027. The site will accommodate up to $10 billion in computing equipment from an undisclosed tenant, further solidifying Hut 8’s position in the AI infrastructure market [3].

Analysts have responded positively to the expansion. Roth Capital, an investment bank, described the move as a "notable step-up" and suggested it could "materially re-rate the stock" as the new sites become operational and secured for AI and HPC use cases [6]. The company’s ability to leverage its Bitcoin treasury for infrastructure expansion has drawn comparisons to other major mining firms that have similarly used asset-backed financing to scale operations. This strategy has helped Hut 8 reduce its reliance on traditional debt while positioning itself for long-term growth in both the mining and AI sectors [5].

Hut 8’s expansion is also supported by its current operational performance. As of June 30, 2025, the company reported that approximately 90% of its existing 1.02 GW platform is already contracted, indicating strong demand for its energy infrastructure. With its total development pipeline now spanning 10.62 GW, including 6.815 GW under diligence and 1.255 GW under exclusivity, the company is well-positioned to meet growing needs from energy-intensive use cases. The firm’s diversified funding approach and strategic focus on AI infrastructure reflect its broader ambition to serve as a key player in the next phase of digital innovation [7].

Source: [1] Hut 8 Announces $1 Billion ATM Stock Issuance Plan (https://www.mexc.com/en-GB/news/hut-8-announces-1-billion-atm-stock-issuance-plan/72053) [2] Hut 8 Bets Big on AI With $1 Billion Raise and Mega Campus (https://cryptodnes.bg/en/hut-8-bets-big-on-ai-with-1-billion-raise-and-mega-campus/) [3] Bitcoin Miner Hut 8 Surges 10% on 1.5GW Expansion Plans (https://www.coindesk.com/business/2025/08/26/bitcoin-miner-hut-8-surges-10-on-1-5gw-expansion-plans) [4] Hut 8 Announces Plans to Develop Four New Sites (https://www.hut8.com/news-insights/press-releases/hut-8-announces-plans-to-develop-four-new-sites) [5] Bitcoin Miner Hut 8 Launches New $1 Billion At-the-Market (https://theminermag.com/news/2025-08-23/bitcoin-hut8-atm) [6] Hut 8 moves 1.5 GW from exclusivity into development (https://blockspace.media/insight/hut-8-moves-1-5-gw-from-exclusivity-into-development-secures-330-million-credit-facility/)