What's Going On With Bitcoin Mining Stock Hut 8 Tuesday?

Shares of Bitcoin BTC/USD miner Hut 8 Corp HUT are trading higher. The company on Tuesday announced that it entered into definitive agreements for a site in West Texas.

What Happened: Hut 8 said it entered into a power purchase agreement and other definitive agreements for a site in Texas with exclusive access to 205 megawatts of immediately available power capacity and land.

Hut 8 said the purchase power agreement and site gives it access to some of the lowest locational wholesale power pricing in North America. The company noted that the site has an existing operational substation and said engineering, procurement and construction efforts for a new data center are underway.

“This transaction exemplifies Hut 8’s differentiated approach to securing new energy capacity through mutually accretive partnerships,” said Asher Genoot, CEO of Hut 8.

“We continue to identify opportunities to work hand-in-hand with energy partners to develop bespoke structures that generate outsized value for every party involved. We believe this partnership-driven approach sets us apart as we continue to build development partnerships across the energy value chain.”

Hut 8 said the transaction is expected to expand its energy infrastructure platform to approximately 1.3 gigawatts of capacity owned and managed. The company added that the site is well-positioned to support a variety of high-density compute applications, including Bitcoin mining and AI. Hut 8 is now finalizing a commercialization plan for the site with the aim of maximizing its value.

Related Link: Bitcoin, Ethereum, Dogecoin Slightly Down, But Short Liquidations Peak And A Bullish Signal Is ‘Within Reach,’ Data Says

HUT Price Action: Hut 8 shares were up 1.54% at $17.75 at the time of publication, according to Benzinga Pro.

Photo: Pixabay.