Hut 8 Corp., a North American bitcoin mining company, has announced plans to upgrade its application-specific integrated circuit (ASIC) fleet, aiming to increase self-mining efficiency and expand hashing power by early 2025.
Hut 8 Moves to Improve Mining Efficiency with ASIC Fleet Upgrade
In this effort, Hut 8 (Nasdaq: HUT) is purchasing 31,145 Bitmain Antminer S21+ bitcoin mining units, kicking off the first phase of an ASIC fleet upgrade at a price of $15 per terahash. These planned upgrades are expected to increase Hut 8’s self-mining hashrate by 66%, from 5.6 to approximately 9.3 exahashes per second (EH/s) when fully operational in early 2025.
Additionally, the company said it anticipates a significant increase in fleet efficiency, predicting a reduction in energy consumption from 31.7 to 19.9 joules per terahash (J/TH). Hut 8 said the move is designed to lay the groundwork for further growth in mining capacity. Hut 8 noted that thanks to its existing option agreement with Bitmain, Hut 8 has the potential to deploy up to 15 EH/s of hosted miners at its Vega facility, potentially increasing its total self-mining capacity to 24 EH/s, with an average efficiency of 15.7 J/TH.
Hut 8 stated that this expansion, which is expected to be completed in Q2 2025, highlights Hut 8’s efforts to optimize its infrastructure to meet the expected increase in demand for digital assets. Hut 8 CEO Asher Genoot noted that the choice of Antminer S21+ units was driven by lower upfront costs and a faster expected payback period compared to higher-efficiency models.
“After extensive modeling, we selected the BITMAIN Antminer S21+ to upgrade our initial fleet due to its strong profitability profile compared to higher efficiency models that require larger capital expenditures,” Genoot commented. “The S21+ offers a faster payback period than higher efficiency models across multiple future hash rate scenarios, allowing us to optimize our return on investment and accelerate value creation.”
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