Shares of Bitcoin miner Hut 8 rose on Monday after the Toronto Stock Exchange- and Nasdaq-listed company said it had signed a second 15-year contract.
Hut 8 shares rose as high as $106 before trading lower around $101. They closed Monday up more than 10%.
The deal will see the company’s Toronto-based Beacon Point campus in Texas data center cover 352.
Hut 8 added that the school has a net worth of $19.6 billion over 15 years, rising to $50.2 billion if renovations are implemented.
Asher Genoot, CEO of Hut 8, said: “The real test of our first strategy is what our partners are willing to do against them.” A real estate developer in Beacon Point decided to double his property on the site, the strongest investment an asset can receive.”
Hut 8 last year signed an agreement with American Data Centers Inc., a company supported by the sons of President Donald Trump Eric and Donald Jr., to provide its Bitcoin mining equipment and help debut in their American Bitcoin mining firm.
Pivot AI
Hut 8 is one of the publicly listed miners that have started to improve resources to provide more powerful computing resources.
The company in December protected Google-backed partnership with Anthropic and Fluidstack to build 2.3 gigawatts of AI data center capacity in the US
Many of the Bitcoin miners have already entered the industry because generating the largest digital currency and market cap is difficult and the need for AI compute surges.
As the price of Bitcoin has fallen, it has become difficult for Bitcoin miners to make money.
Nasdaq-listed Bitfarms last year announced that it would end mining operations to focus on supercomputers.
Instead of dropping mining operations entirely, several Bitcoin miners have instead marketed themselves as “compute” or “digital infrastructure” companies as they shift between generating digital currency and handing over computation to AI – depending on what’s most profitable.
Popular miners Terawulf, IREN, and Cipher Mining last year signed multi-year HPC contracts with Alphabet Inc.’s Google and Microsoft.
Both the crypto mining and HPC industries require a lot of power and data centers – but the move is not always easy: AI data centers require more expertise than Bitcoin mining.
