Hut 8 Bitcoin Mining Company Sees 10% Surge Following Expansion Plans

Hut 8 (HUT), a public Bitcoin mining and energy infrastructure firm, has experienced a notable increase in its stock price following the announcement of plans to significantly enhance its power capacity.

The company intends to construct four new sites across the United States, which will add more than 1.5 gigawatts (GW) of power capacity, bringing its total to over 2.5 GW distributed across 19 locations. According to a press release, the stock surged by 10%, reaching a peak not seen in seven months, just under $26 per share, despite Bitcoin prices hovering below $110,000.

Data center firms are finding renewed interest from investors as the demand for computing power surges due to advances in artificial intelligence innovation. Recently, Google acquired a minority stake in TeraWulf, another Bitcoin miner, as part of a substantial $3.2 billion AI infrastructure initiative.

“This expansion marks a defining step in Hut 8’s evolution into one of the largest energy and digital infrastructure platforms in the world,” said Hut 8 CEO Asher Genoot.

The company plans to secure financing for these development projects, expecting to raise up to $2.4 billion from various sources, including borrowing against its Bitcoin assets valued at around $1.1 billion, accessing a $200 million revolving credit line, an expanded $130 million facility from Coinbase, and initiating a $1 billion equity offering.

Investment bank Roth Capital characterized this expansion plan as a significant move, suggesting it has the potential to notably re-evaluate the stock as the new facilities become operational and are utilized for AI and high-performance computing.