Hut 8 Expansion: 1.5GW Power Boost Sends Stock Up 10%
Hut 8 expansion aims to more than double its bitcoin mining power capacity to over 2.5GW. The firm will build four new U.S. sites adding 1.5GW under the plan. The announcement sent Hut 8’s stock up 10% to a seven-month high as bitcoin prices languished below $110,000. The surge reflects strong AI demand for data center computing power. To fund the Hut 8 expansion, the company plans to secure up to $2.4 billion in liquidity. That includes borrowing against 10,000 BTC, a $200 million revolving credit line, a $130 million facility from Coinbase, and a $1 billion at-the-market equity offering. Investment bank Roth Capital said the move could materially re-rate the stock as new sites come online and secure AI and high-performance computing contracts.
Bullish
The Hut 8 expansion signals a major capacity increase in bitcoin mining and aligns with surging demand for AI-driven data center resources. The 10% stock jump to a seven-month high highlights strong investor confidence. The diverse $2.4 billion financing package—backed by BTC collateral, credit lines and equity—underscores commitment to growth. Similar capacity upgrades by peers like Marathon Digital have driven stock rallies. In the short term, the announcement acts as a bullish catalyst. Over the long term, the added 1.5GW and potential AI/HPC contracts could boost revenue and strengthen Hut 8’s market position.