Miners Expand Capacity Ahead of Halving
Hut 8 Mining has signed an interim agreement with Celsius Network to build out a new cryptocurrency mining facility in Texas. The partnership comes as part of Celsius’s bankruptcy proceedings and aims to allow both companies to consolidate gains and expand capacity ahead of Bitcoin’s halving event expected next year.
Key details of the agreement include:>
- Hut 8 will provide development services for a new mining facility in Cedarvale, Texas that will host over 66,000 mining machines and use over 215 megawatts (MW) of energy.
- Construction of the new Cedarvale site is set to begin next week.
- Hut 8’s scope of work will involve construction management, procurement, logistics, financial modeling, budgeting, and RFP coordination.
- Once operational, the facility is expected to increase Hut 8’s total mining capacity to 895 MW across its North American locations.
- Hut 8 was selected for the project due to its experience in mining infrastructure and operational management.
The partnership aims to build equity between the two companies during Celsius’s bankruptcy, and potentially attract new investors. Hut 8 also plans to use the new facility to increase its local production capacity in response to rising Bitcoin and Ethereum prices.
Miners Prepare for Halving
The cryptocurrency mining sector is preparing for Bitcoin’s next halving event, which is expected to occur in mid 2023. The halving typically impacts Bitcoin prices and mining profitability.
After being hit hard during the recent crypto winter with low crypto prices, Bitcoin miners like Hut 8 are now in a better position to consolidate gains as Bitcoin’s price has risen above $40,000. The new Texas mining facility will help Hut 8 enhance capacity and efficiency ahead of the upcoming halving.