Hut 8 has announced a new power purchase agreement for a site in West Texas, providing access to 205 megawatts. This development marks a significant expansion for the Bitcoin mining company based in Miami.

According to a press release, the West Texas site is adjacent to a wind farm and connected to the Electric Reliability Council of Texas grid. This connection offers access to some of the lowest locational wholesale power pricing in North America. The site is well-positioned to support a variety of high-density compute applications, including Bitcoin mining and AI. A spokesperson for Hut 8 mentioned that they are finalizing a commercialization plan to maximize the site’s value.

“The site is well-positioned to support a variety of high-density compute applications, including Bitcoin mining and AI. Hut 8 is finalizing a commercialization plan for the site with the aim of maximizing its value,” a spokesperson for Hut 8 added.

Although financial details were not disclosed, the transaction is subject to the satisfaction of customary conditions. With this latest expansion, Hut 8 aims to grow its energy infrastructure platform to approximately 1.3 gigawatts.

Hut 8 CEO Asher Genoot noted that this agreement represents the first time a large data center load has been approved under the complex regulatory framework in this particular market.

Recently, Hut 8 secured $150 million in strategic funding from Coatue to strengthen its position in the artificial intelligence (AI) infrastructure market. This funding, structured through convertible notes with an 8% annual interest rate, supports Hut 8’s strategic move into AI infrastructure to meet rising market demands.

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