Cabin 8 (Hut)A public bitcoin Mining and energy infrastructure company rose Tuesday after revealing plans for more than doubling the company’s power capacity.
Plans include the development of four new places throughout the US with more than 1.5 gigawatts (Gw)The total power capacity is expanding to over $ 2.5 GW in 19 locations, according to a press release.
The share rose more than 10%and hit a seven-month high just shy at $ 26 per year. Share, even when Bitcoin prices remain stuck in Doldrums below $ 110,000.
Data center companies enjoy renewed investor interest as the demand for computing power increases for fuel for artificial intelligence innovation. Recently, the tech giant Google took a minority share in Bitcoin Miner Terawulf as part of an AI infrastructure agreement of $ 3.2 billion.
“This expansion marks a defining step in HUT 8’s development to one of the largest energy and digital infrastructure platforms in the world,” Hut 8 CEO Asher Genoot said in the press release.
The company said it has reclassified the projects from “exclusivity” to “development”, which means it has ensured soil and power agreements and works on design and commercialization.
To finance the projects, the company plans to draw up to $$ 2.4 billion in liquidity from different sources. It includes borrowing against its 10,000 BTC stash worth approx. 1.1 billion dollars, a revolving credit line of $ 200 million, an expanded $ 130 million expanded from Coinbase and a recently launched $ 1 billion dollar on the market.
Investment Bank Roth Capital considered the expansion plans as a “remarkable step-up” with the potential to “materially reuse the stock” as the websites come online and are contracted to AI and high-performance computing.
Read more: Bitcoin Mining is facing ‘incredibly difficult’ market as the power becomes the real currency
