Bitcoin miner Hut 8 has reached a deal to increase its operational mining power in Texas

According to a July 9 announcement, the company secured a purchase agreement for 205 megawatts of power and land in West Texas.

Bitcoin miner Hut 8 (NASDAQ:HUT) has announced a new purchase agreement for 205 megawatts of power and land in West Texas.

The transaction will expand Hut 8’s energy infrastructure platform to approximately 1.3 gigawatts of capacity. The site is located adjacent to a wind farm and connected to the Electric Reliability Council of Texas (ERCOT), which manages the flow of electric power to about 90% of the state’s electric load. According to Hut 8, it is now able to access “some of the lowest locational wholesale power pricing in North America.”

“This is the first time a large data center load has been approved under the complex regulatory framework in this particular market,” said Asher Genoot, Hut 8’s CEO.

In December 2023, Hut 8 merged with US Bitcoin Corp to form a new entity in a deal valued at $725 million. Since then, the company has been increasing its presence in the United States.

Back in February, Hut 8 started construction on a new 63-megawatt mining facility in Culberson County. The new operation will deliver 30% lower mining costs compared to its other mining sites in the country, as per the company.

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Bitcoin miners have been taking steps to diversify revenue streams for data centers and increase their hashrate in response to the recent halving in April, including through mergers, acquisitions, and partnerships.

Among them, CleanSpark recently announced an agreement to acquire five mining facilities in Georgia. The deal, priced at $25.8 million, is predicted to add 3.7 exahashes per second (EH/s) in processing power to the company’s hashrate. Across the mining sites, power output ranges from 8 to 15 megawatts for a total of 60 megawatts.

Meanwhile, public Bitcoin mining companies secured $2 billion in equity financing ahead of the revenue cut. Marathon Digital (NASDAQ:MARA), CleanSpark, and Riot Platforms (NASDAQ:RIOT) led the fundraising, holding over $1.33 billion in cash and significant Bitcoin reserves by the end of March.

According to data from CryptoQuant, Bitcoin miners have been seeing their daily revenues decline by 63% since the halving. At the time of writing, BTC is trading at $57,683, showing gains of 3.3% over the last 24 hours and 30.3% year to date.

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