Hut 8 Mining reports growth in the high-performance computing sector

The mining company Hut 8 Mining has announced new contracts for high-performance computing services, including the artificial intelligence (AI) industry. Cointelegraph reports.

CEO Jamie Leverton spoke about a five-year contract to provide infrastructure and hosting services for the Ministry of Health of British Columbia (Canada). Hut 8 also allocated capacity from its GPU fleet to XYZ AI, a company active in generative AI for 3D imaging.

Hut 8 began developing its high-performance computing business in early 2022 after acquiring TeraGo Inc. For the year, the new unit generated approximately $12.2 million of the total $109 million.

“Over the last few months, the industry has significantly recovered. We are seeing more momentum than initially anticipated. Partly this is because some peers have followed our lead into high-performance computing and AI.”

In January, the company filed a lawsuit against the electricity supplier Validus Power Corp for the North Bay data centre (Ontario, Canada) due to non-fulfillment of contractual obligations.

In November 2022, Hut 8 said the provider had not met the contractual operating targets. Validus demanded payment at a higher rate. The mining facility’s operations were halted.

Hut 8 confirmed that in June it relocated about 6,400 ASIC miners from the North Bay data centre to Texas under hosting terms. The company signed a three-month agreement with monthly extensions. Completion of the equipment hookup was planned for by the end of July. This would add about 600 PH/s to the firm’s hash rate, bringing the total to roughly 3.2 EH/s.

Also in June, Hut 8 arranged with Coinbase to open a $50 million credit line secured by Bitcoin. Leverton said the funds would “provide additional financial flexibility” during the Bitcoin halving.

The company is in the process of merging with the US Bitcoin mining firm.