Hut 8 CEO Asher Genoot recently conducted a poll on X (formerly Twitter) that garnered a remarkable response from the crypto community.
Genoot posed the question, “Hut 8 already holds 9,100 Bitcoin on our balance sheet. Should we increase our Bitcoin reserves?” The overwhelming majority, 93.7%, voted in favor of increasing the reserves. Only 2.8% preferred to maintain the current level, while 3.6% suggested selling for cash.
A powerhouse in mining
Established in 2017, Hut 8 quickly established itself as a leader in large-scale mining operations. In March of the same year, they secured a $100 million electricity deal to power their mining facility in Medicine Hat, Alberta. By July 2018, the facility was operational, churning out Bitcoin at an impressive rate.
The company went public shortly after, debuting on the OTCQX Best Market in May 2018 before moving to the Toronto Stock Exchange in 2019. This move not only increased their visibility but also provided the necessary capital for expansion.
By mid-2019, Hut 8 had mined 2,816 Bitcoin in a single quarter, solidifying its position as a major player in the crypto mining industry.
A change in leadership in 2020 brought Jaime Leverton to the helm, leading the company through a period of significant growth. The merger with US Bitcoin Corp in 2023 further solidified Hut 8’s position as one of the largest miners in North America, with Asher Genoot taking over as CEO.
Unlike some mining companies, Hut 8 follows a self-mining strategy, holding onto the coins they mine rather than selling them. This approach allows them to weather market fluctuations while betting on the long-term value of Bitcoin.
With a focus on sustainability, Hut 8 aims to become carbon-neutral by 2025 by utilizing a mix of hydro and nuclear power. They have over 5 gigawatts of projects in the pipeline, with 1.5 gigawatts already secured under exclusivity agreements.
The company is also investing in AI-focused data center projects, expected to deliver over 430 megawatts of capacity by 2025. These facilities could become key players in large-scale AI computing, diversifying Hut 8’s revenue streams.
On the hardware front, Hut 8 is upgrading its ASIC fleet to improve efficiency by 37%, reducing energy consumption to 19.9 joules per terahash. They aim to achieve a self-mining hashrate of 9.3 EH/s by early 2025, with plans to reach 24 EH/s by Q2 pending favorable conditions.
The collaboration with BITMAIN has been crucial in this endeavor, leading to the development of cutting-edge mining systems like the U3S21EXPH, designed for high-density racks and advanced cooling.
Additionally, Hut 8 has introduced a GPU-as-a-Service vertical to diversify its offerings beyond Bitcoin. By utilizing GPUs for AI and computational tasks, the company is positioning itself to tap into the growing AI infrastructure market.
Genoot has outlined a strategy to drive nine-figure annual revenues while reducing interest expenses by $17 million over three years, with initiatives like the GPU-as-a-Service program playing a key role in achieving these goals.
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