Bitcoin News Today: Hut 8 Ramps Up U.S. Mining Push to Power AI’s Future

Bitcoin miner Hut 8 has announced plans to expand its U.S.-based operations by 1.5 gigawatts (GW), a move that has sent its stock up by 10% and highlighted the growing demand for energy-intensive computing power. The expansion includes the development of four new sites across Texas, Louisiana, and Illinois, with the total power capacity expected to reach over 2.55 GW once fully operational. The company has reclassified these projects from "exclusivity" to "development," indicating that land and power agreements have already been secured. The CEO, Asher Genoot, emphasized that the expansion positions Hut 8 to more than double its platform size and meet increasing demand in areas such as artificial intelligence and high-performance computing [2].

The new facilities will span four key locations: a 300 MW site in River Bend, Louisiana (MISO grid), a 1,000 MW project in Texas (ERCOT grid), an 180 MW expansion in Texas (ERCOT grid), and a 50 MW site in Illinois (PJM grid). Once completed, these developments will bring Hut 8’s total power capacity to 2.55 GW, reflecting its aggressive expansion strategy. Approximately 90% of the company’s existing 1.02 GW capacity is already contracted, underscoring the robust demand for its services. The projects are expected to be funded through a combination of sources, including $1.1 billion in Bitcoin reserves, a $200 million revolving credit line, an expanded $130 million facility from Coinbase, and a $1 billion at-the-market equity offering [2].

The expansion plans have drawn attention from investment banks, with Roth Capital describing the move as a "notable step-up" with the potential to "materially re-rate the stock" as the new sites come online and secure contracts. Hut 8 has also secured $330 million in financing from Two Prime and Coinbase at an 8.4% weighted average cost. The company aims to leverage its Bitcoin reserves and diverse financing tools to accelerate the development of these high-capacity projects. These strategic decisions are aligned with broader trends in the digital infrastructure sector, where demand for computing power is surging to support AI innovation and energy-intensive industrial applications [3].

The U.S. is currently a dominant player in the global Bitcoin mining industry, controlling 75.4% of the global hash rate according to fintech platform OneSafe. This expansion by Hut 8 is a reflection of the country's growing influence in the cryptocurrency space, with the industry creating over 31,000 jobs in 2024. Hut 8, which also operates American Bitcoin—a Bitcoin mining and treasury company linked to the Trump family—has facilities across both the U.S. and Canada. The company’s U.S. sites are primarily located in Texas, a state that has become a hub for data centers and energy infrastructure due to its abundant electricity supply and relatively low operational costs [4].

The move aligns with evolving regulatory landscapes in key U.S. states. In Texas, cryptocurrency mining facilities exceeding 75 MW must register with the Public Utility Commission, reflecting growing scrutiny over energy use and grid stability. Meanwhile, Louisiana passed supportive legislation for Bitcoin mining in industrial areas in June 2024, aiming to attract new businesses and boost the local economy. Illinois, while lacking specific cryptocurrency regulations, has seen the establishment of Bitcoin mining operations in cities like Bloomington-Normal and Effingham. These developments highlight the industry’s shift toward regions with favorable regulatory environments and access to affordable energy [4].

Hut 8’s expansion also reflects a broader industry trend of diversifying geographic footprints and securing long-term energy contracts. As Bitcoin prices remain relatively stable, the demand for computing power continues to rise, driven primarily by AI and high-performance computing needs. The company’s ability to secure substantial liquidity and leverage its Bitcoin reserves positions it to scale rapidly and capitalize on these emerging opportunities. Analysts suggest that as the sites come online and secure long-term contracts, the company’s stock could see further appreciation, especially in a market where data center infrastructure is gaining renewed investor interest [2].

Source:

[1] 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)

[2] 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)

[3] Hut 8 begins developing 1.5 GW expansion, secures $330 (https://finance.yahoo.com/news/hut-8-moves-1-135016062.html)

[4] Bitcoin Miner Hut 8 Announces 1.5GW Expansion in the (https://cointelegraph.com/news/bitcoin-miner-hut-8-expansion-in-us-stock-rises)