Hut 8 Mining Sees Growth in HPC Sector

Mining company Hut 8 Mining announced new contracts for the provision of services in the field of high performance computing, including the artificial intelligence (AI) industry. It is reported by Cointelegraph.

CEO Jamie Leverton spoke about a five-year contract for the provision of infrastructure and hosting with the Department of the Interior of British Columbia (Canada). Hut 8 has also dedicated a fleet of GPUs to XYZ AI, a generative AI company in 3D imaging.

Hut 8 began developing the HPC business in early 2022 after being acquired by TeraGo Inc. At the end of the year, the new division generated ~$12.2 million in annual revenue out of a total of $109 million.

Leverton commented on the tough market conditions that have prevailed for about a year and a half:

“Over the past few months, the industry has largely recovered. We are seeing more momentum than originally thought. This is partly due to the fact that some of our colleagues followed our example of moving into the field of high performance computing and AI.”

In January, the company sued electricity supplier Validus Power Corp for a data center in North Bay, Ontario, Canada, for breach of contract.

In November 2022, Hut 8 claimed that the provider had failed to meet contractual operating performance. Validus demanded payment at a higher rate. The operation of the mining object has been stopped.

Hut 8 confirmed that they relocated ~6400 ASIC miners from the data center to Texas in June on hosting terms. The company entered into an agreement for three months with a monthly extension. It is planned to complete the connection of the equipment by the end of July. This will add ~600 PH/s to the firm’s hashrate, which will push the total to ~3.2 EH/s.

Also in June, Hut 8 agreed with Coinbase to open a $50 million credit line for it secured by bitcoins. Leverton then stated that the funds “will provide additional financial flexibility” for the period of halving in the network of the first cryptocurrency.

Recall that the company is in the process of merging with the American mining firm US Bitcoin.

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