Hut 8 Mining Corp has announced significant plans to enhance its cryptocurrency mining capabilities. The company expects its self-mining hash rate to rise by 66% to approximately 9.3 exahashes per second (EH/s) by early 2025. This increase follows Hut 8’s agreement to purchase 31,145 Bitmain Antminer S21+ machines for $15 per terahash. These machines are slated for delivery in the first quarter of 2025, which underscores Hut 8’s commitment to ramping up its mining operations.
This anticipated growth is noteworthy given the recent trend among major Bitcoin miners investing in new hardware in response to the halving event that occurred in April 2024. Hut 8 had previously announced a potential expansion option with Bitmain in September, which could allow for an additional 15 EH/s, pushing the company’s total hash rate closer to 24 EH/s by the second quarter of 2025 if the option is exercised.
The decision to select the Antminer S21+ is influenced by its advantageous return profile and payback period compared to higher-efficiency models that necessitate larger investments. This strategic choice aims to optimize investment returns and enhance overall value creation for the company.
In terms of efficiency, the deployment of these new miners is expected to reduce Hut 8’s average fleet efficiency from 31.7 joules per terahash (J/TH) to 19.9 J/TH, reflecting a 37% improvement. If Hut 8 opts to acquire the U3S21EXPH ASIC miners from its September agreement, the average efficiency could further decrease to 15.7 J/TH.
These upcoming installations will be distributed among Hut 8’s 11 mining sites, with additional ASIC miners being hosted by Bitmain. The increase in hash rate will support the company’s initiatives in AI and high-performance computing sectors, aligning with broader industry trends where miners seek to maximize returns. The announcement coincided with a notable surge in Bitcoin ’s market value, further energizing investor sentiment around Hut 8, which recently saw its stock price rise by 11%.
