Hut 8, a digital asset miner operating in North America, has commenced the construction of a state-of-the-art mining facility in Culberson County, Texas. This new facility, which will be Hut 8’s fifth mining location in the United States, is expected to be operational and online for miners by the second quarter of 2024.
In an official press release, Hut 8 stated that they anticipate mining Bitcoin (BTC) at a significantly reduced cost compared to their other mining sites in Texas and Nebraska. The company projects a 30% decrease in mining expenses at the new facility. Asher Genoot, the CEO of Hut 8, highlighted that the setup costs for the facility were also substantially lower.
Recent developments in Hut 8’s corporate structure have been noteworthy. In December 2023, Hut 8, based in Canada, merged with US Bitcoin Corp., resulting in the formation of a new company. Following the merger, Hut 8 resumed operations as a U.S.-based corporation headquartered in Miami, Florida, under the same name.
However, Hut 8’s expansion plans coincide with a turbulent period for the company. It has faced allegations of engaging in a “pump and dump” scheme, as claimed by JCapital Research, a firm specializing in short-selling. In response, Hut 8 dismissed JCapital’s accusations, describing them as the biased opinions of self-proclaimed activists seeking to profit from a decline in the company’s share price.
Furthermore, Hut 8 is currently involved in a class-action lawsuit that accuses the company of making false and/or misleading statements and failing to disclose crucial information. The lawsuit alleges that one of US Bitcoin Corp.’s major shareholders remained undisclosed, and that their core asset had a history of inadequate provision of energy and high-speed internet. Additionally, it claims that the profitability of certain US Bitcoin Corp. assets had been overstated.
Update 12:55 PST 2/27: Please note that the article has been revised to reflect that only a single class-action lawsuit has been filed against Hut 8.