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Thursday, Aug 28, 2025
Mugglehead Investment Magazine
Alternative investment news based in Vancouver, B.C.
Hut 8 targets 2.5 GW platform with four new energy infrastructure sites
Hut 8 targets 2.5 GW platform with four new energy infrastructure sites
The former Bitcoin mining site at Drumheller. Image via Hut 8 Corp.

Bitcoin

Hut 8 targets 2.5 GW platform with four new energy infrastructure sites

The sites range from 50 megawatts to 1,000 megawatts of utility capacity

Hut 8 Corp (NASDAQ: HUT) (TSE: HUT) announced a major expansion on Tuesday that will add four new development sites across the United States, advancing its position as a leading energy and digital infrastructure platform.

The move reclassifies 1,530 megawatts of capacity from “Capacity Under Exclusivity” into a new category: “Capacity Under Development.” With this step, the company expects its platform to exceed 2.5 gigawatts of capacity under management once commercialized.

“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 Asher Genoot, CEO of Hut 8.

The sites range from 50 megawatts to 1,000 megawatts of utility capacity. The company chose each for immediate power access and the potential to support commercialization. In addition, Hut 8 intends to incorporate next-generation architecture where feasible, allowing rapid deployment and flexibility across customer requirements. Furthermore, the company is actively advancing site design, infrastructure buildout, and customer engagement to speed commercialization.

The new category of “Capacity Under Development” signals that Hut 8 has moved beyond exclusivity and is now executing on definitive land and power agreements. Projects in this stage require meaningful investment but will transition into “Capacity Under Management” once operational. In addition, this framework provides transparency into Hut 8’s multi-gigawatt pipeline and long-term growth strategy.

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Financing has multiple sources

The company will finance this operation with a mix of balance sheet strength, new credit facilities, equity flexibility, and project financing. As of August 25, 2025, Hut 8 holds USD$2.4 billion in liquidity through cash, Bitcoin, credit, and its at-the-market (ATM) equity program. This diverse base provides multiple options to fund development without overextending risk.

The company currently holds 10,278 Bitcoin valued at USD$1.2 billion, which it can use to generate yield or collateralize loans. Furthermore, Hut 8 secured a USD$200 million revolving credit facility with Two Prime. It also upsized its USD$130 million deal with Coinbase Global (NASDAQ: COIN). Combined, these agreements provide USD$330 million in liquidity at a weighted average cost of 8.4 per cent.

Meanwhile, Hut 8 introduced a new USD$1 billion ATM equity program after retiring its prior program with 40 per cent unutilized. The prior program issued shares at an average price of USD$27.83 per share. Furthermore, the company sold only USD$21.1 million between February 1, 2025 and termination. This restrained issuance highlights the company’s careful approach to equity financing.

“The strength of our balance sheet has been a critical differentiator in demonstrating our ability to minimize execution risk and deliver at scale to prospective customers,” Genoot said. “Building on that foundation, our updated ATM program and new credit facility with Two Prime expand liquidity and optionality as we seek to maximize risk-adjusted returns.”

In addition to balance sheet resources, Hut 8 has received interest from banks to provide project-level financing. These structures would be built around customer agreements, ensuring capital efficiency while minimizing execution risk. Furthermore, the company plans to pursue only opportunities that align with its disciplined investment strategy.

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