Bitcoin miner Hut 8 has signed a power purchase agreement for 205 megawatts of immediately available power capacity and land at a site in West Texas, Odaily Planet reported. This is the first deal in Hut 8's previously announced 1,100 megawatts of exclusive energy capacity plan.

“We will continue to look for opportunities to work hand-in-hand with our energy partners to develop tailored structures that create value for each party,” said Asher Genoot, CEO of Hut 8.

Hut 8 said the site is well-positioned to support high-density computing applications, including Bitcoin and artificial intelligence, and that data center engineering, procurement and construction work is underway. Once completed, the transaction is expected to increase Hut 8's total owned and managed service capacity to approximately 1.3 GW.