Hut 8 Corp Initiates Self-Mining Operations at Salt Creek Facility
The publicly traded Bitcoin mining firm Hut 8 Corp has made headlines with the initiation of self-mining operations at its new Salt Creek facility in Texas. The facility, which was completed in just 78 days after breaking ground, is expected to reduce mining costs by 30% compared to the firm’s hosting facilities.
The Salt Creek facility, with 63 megawatts of power, represents only one-third of the entire site. Hut 8 CEO Asher Genoot expressed optimism about the energy profile of the site, stating that it will provide critical control over the miner fleet and operating costs as the company approaches the Bitcoin halving event.
The Bitcoin halving, which occurs every four years, will cut the rate at which miners are rewarded with new coins in half. This event is expected to reduce the total revenue of the mining industry, making efficiency crucial for profitability.
Hut 8 has strategically relocated its most efficient mining machines to the Salt Creek facility to maximize its hash rate ahead of the halving. The company has also implemented Reactor, an automated energy curtailment software, to ensure miners stay online when they can mine profitably.
Despite slight drawdowns in BTC and other Bitcoin-related stocks, Hut 8’s stock saw a 0.9% increase following the announcement of the Salt Creek facility’s operationalization. The company remains focused on delivering a cost-effective buildout, with an expected all-in cost of $275,000 per megawatt or less, representing a 40% savings compared to recent acquisitions in the area.
