Hut 8 Expands Partnership with Bitmain, Unveils New ASIC Miner
Date: 2024-09-20 Author: Oliver Abernathy Categories: BUSINESS
This reflects a trend in the Bitcoin mining industry, where companies are looking for new revenue streams.
Hut 8, one of the largest Bitcoin mining companies in North America, announced on September 19 that it has expanded its partnership with leading mining hardware manufacturer Bitmain.
According to a statement from Hut 8, the collaboration has resulted in the launch of the U3S21EXPH, a next-generation ASIC miner designed to improve efficiency and reduce costs.
Hut 8 plans to deploy this model in Q2 2025 via a hosting agreement with a capacity of 15 exahashes per second (EH/s) using Hut 8’s proprietary data center infrastructure.
The Most Efficient ASIC Miner to Date
The U3S21EXPH is the first ASIC miner to feature liquid cooling built into a compact U-shaped form factor, making it a more compact and energy-efficient solution.
The new miner is capable of achieving up to 860 terahashes (TH/s) with an efficiency of 13 joules per TH, significantly outperforming many other ASIC miners on the market. This efficiency figure translates into lower power consumption and lower operating costs for miners.
By implementing artificial intelligence (AI) into data center operations, Hut 8 aims to further optimize efficiency and reduce costs.
“Our partnership with Bitmain has been instrumental in advancing our ASIC computing solutions and creating a more scalable model for data center design,” said Asher Genoat, CEO of Hut 8.
The initial agreement for U3S21EXPH is expected to increase Hut 8’s managed hashrate from 18.5 EH/s to approximately 33.5 EH/s. As the company prepares for future challenges, including the increased difficulty of the Bitcoin network, U3S21EXPH may offer a solution to improve efficiency and maintain profitability.
Bitcoin miners look for new revenue streams
The Bitcoin mining industry is facing increasing financial pressure due to reduced block subsidies and rising energy costs. Many companies, including Hut 8, are responding by exploring alternative revenue streams and diversifying their operations.
One of their approaches is diversifying into high-performance computing (HPC) and AI-based business models. By leveraging a powerful infrastructure across a wider range of applications, miners are looking to secure more stable revenue streams and potentially higher profits.
According to investment firm VanEck, the potential upside for publicly traded Bitcoin mining companies that diversify their operations into AI and HPC is significant. Over a 13-year period, such companies could generate additional annual profits exceeding $13.9 billion by 2027.
In addition to the Bitmain partnership, Hut 8 has secured a significant $150 million investment from Coatue Management. The funds, raised through a convertible note in June 2024, will be used to develop the company’s new energy platform and AI infrastructure.
