Hut 8 to Spin Out Mining Ops, Expands US Capacity With 1.53 GW Buildout

Hut 8 Corp has announced that it will transfer the majority of its Bitcoin mining operations to a separate entity called American Bitcoin within the coming week. The move positions the company as a more energy-focused business while seeking better financing terms by separating the mining revenue exposure.  

Alongside the restructuring, Hut 8 revealed plans to develop 1.53 gigawatts (GW) of additional capacity across four US sites located in Louisiana, Texas and Illinois, increasing its managed capacity to approximately 2.55 GW across 19 locations. 

These projects, ranging from 50 megawatts (MW) to 1,000 MW, have advanced from exclusivity to development, signalling that land and power agreements have been secured and work on design and commercialisation is underway. The Louisiana site will provide 300 MW, Illinois will contribute 50 MW, and the two Texas sites will deliver 1,000 MW and 180 MW respectively.

Company CEO Asher Genoot highlighted that moving more than 1.5 GW of capacity to development is intended to more than double Hut 8’s scale while diversifying its US footprint to meet rising demand from energy-intensive sectors such as artificial intelligence and high-performance computing (HPC).

This expansion marks a defining step in Hut 8’s evolution into one of the largest energy and digital infrastructure platforms in the world.

Asher Genoot, CEO of Hut 8

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Financing the Expansion

Funding for the expansion will leverage up to US$2.4 billion (AU$3.68 billion) in liquidity, including cash, 10,278 Bitcoin valued at US$1.2 billion (AU$1.84 billion), credit facilities with Two Prime and Coinbase, and a US$1 billion (AU$1.54 billion) at-the-market equity programme.

Benchmark analyst Mark Palmer responded positively, raising his price target on Hut 8 shares from US$33 (AU$50.7) to US$36 (AU$55.3), suggesting almost 40% potential upside on the stock. Palmer described the expansion as demonstrating a clear roadmap for monetising Hut 8’s energy assets and broadening its infrastructure capabilities.

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