Bitcoin miner Hut 8 Corp (TSE: HUT) (NASDAQ: HUT) claims that it will be able to raise its self-mining hashrate by 66 per cent by the first quarter of 2025 after buying another 31,145 Bitmain Antminers.
The company announced in a Wednesday statement that it will pay USD$15 per terahash for the miners, which should be in house by early Q1, 2025.
Hut 8 anticipates that the new additions will help boost its self-mining hashrate from 5.6 exahashes per second (EH/s) to approximately 9.3 EH/s once installed. This follows Hut 8’s announcement in September of a purchase option with Bitmain, which would allow the firm to add roughly 15 EH/s. If it exercises this option, the firm’s hashrate could reach 24 EH/s as soon as Q2 2025.
“After extensive modelling, we selected the Bitmain Antminer S21+ for our initial fleet upgrade due to its strong return profile relative to higher-efficiency models that require larger capital outlays,” said Asher Genoot, chief executive officer of Hut 8.
“The S21+ offers a faster payback period than more efficient models across a wide band of future hashprice scenarios, enabling us to optimize investment returns and accelerate value creation.”
Major Bitcoin miners are continuing to purchase new hardware to increase hashrate after the April 2024 halving event. The S21+ provides a faster payback period than more efficient models across a broad range of future hashprice scenarios, allowing Hut 8 to optimize investment returns and accelerate value creation.
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Hut 8 will install antminers across several of its 11 sites
Deploying the 31,145 Bitmain Antminers will also improve Hut 8’s average fleet efficiency from 31.7 to 19.9 joules per terahash (J/TH), marking a 37 per cent improvement. Hut 8 noted that it could further reduce its average fleet efficiency to 15.7 J/TH if it goes through with the purchase option for the U3S21EXPH ASIC miners from the September agreement.
Hut 8 will install the Bitmain Antminer S21+ machines across several of its 11 mining sites. Meanwhile Bitmain will host the U3S21EXPH ASIC miners from Hut 8’s purchase agreement. Like other Bitcoin miners, Hut 8 plans to use the increased hashrate to maximize returns through its AI and high-performance computing businesses.
The company made this announcement a day after Bitcoin surged to a new all-time high following Donald Trump’s presidential victory. Hut 8’s share price also rose 11 per cent to $18.59 on Nov. 6, aligning with gains in many other crypto-related stocks, according to Google Finance data.
Bitcoin experienced a sharp rally after Trump’s second presidential win, with its price reaching unprecedented highs. This surge reflected heightened interest from investors seeking alternatives amid potential policy shifts and economic uncertainty.
As Bitcoin’s value climbed, trading volumes spiked, signaling renewed confidence in cryptocurrency as a stable asset during turbulent times. Subsequently, major crypto companies, including Bitcoin miners, saw their stocks rise alongside the digital currency’s momentum.
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joseph@mugglehead.com
