Mining company Hut 8 has announced the commencement of construction on a bitcoin mining facility in Culberson, Texas, with an anticipated hash rate of 3.6 EH/s.
It’s a great day to build, esp. when it’s at a 40% savings over buying turnkey sites! Construction is underway at our newest site in Culberson County, TX: expected to come online in Q2, the 63 MW site is expected to have up to 3.6 EH/s of self-mining capacity. More info in our… pic.twitter.com/LEG347mrEu
— Hut 8 (@Hut8Corp) February 27, 2024
The construction of the 63 MW facility is projected to be approximately 40% cheaper than purchasing a turnkey site.
According to a press release, recent acquisitions were made at a cost of $460,000 per MW. By building in-house, the firm expects to reduce these costs to $275,000.
“Specifically for the Culberson County facility, we anticipate building it for $17.3 million or less, instead of approximately $29 million,” stated Hut 8 CEO Asher Genoot.
The company also announced a revision of its bitcoin reserve storage strategy. Hut 8 intends to utilize digital assets to fund strategic initiatives.
Decisions regarding the sale of cryptocurrency from the balance will be made on a case-by-case basis, with the first being the expansion in Culberson.
“The core principle of our new strategy is the thoughtful use of capital to maintain a sustainable balance and position ourselves to seize opportunities as they arise,” noted Genoot, referencing the upcoming halving.
According to Bitcoin Treasures, the company holds 9,195 BTC valued at approximately $524 million at the time of writing.
Hut 8 anticipates that the cost of bitcoin mining at the new data center will be approximately 30% lower than at its existing facilities in Granbury, Texas, and Kearney, Nebraska.
Back in December, Canada-registered Hut 8 completed a merger with the American company US Bitcoin.