Hut 8 has cleared its $38 million loan balance with Anchorage Digital through a stock conversion, positioning itself for future AI-driven initiatives. Anchorage Digital converted the debt into common shares at $16.395 each, representing a 51% premium over the 20-day volume-weighted average as of September 26. On October 1, Hut 8’s stock opened at $12.30.
In February 2023, Hut 8 restructured its loan with Anchorage Digital, using 21,000 mining machines as collateral. Despite paying off this loan, the company still holds approximately $290 million in debt, including a $150 million convertible note with Coatue Management. This note, signed in June, aims to fund Hut 8’s expansion into artificial intelligence (AI) computing capacity.
Regarding loan repayment, Hut 8 CEO Asher Genoot stated:
With a stronger balance sheet and reduced leverage, we are now in a better position to engage with potential partners and push forward with next-generation mining and AI data centers.
– Asher Genoot
Hut 8 launches a GPU-as-a-Service vertical and deploys 1,000 Nvidia GPUs
On September 26, Hut 8 launched its GPU-as-a-service initiative in partnership with AI developer AdvizeX. The initiative utilizes 1,000 Nvidia H100 GPUs in Hewlett Packard Enterprise supercomputers. The service is offered under Hut 8’s subsidiary, Highrise AI, Inc., as part of a five-year agreement with the artificial intelligence developer.
This development aligns with the broader trend of Bitcoin miners shifting some resources to AI and high-performance computing as the upcoming Bitcoin halving and rising AI demand reshape the industry. Asher believes that expanding into AI computing has many potential financial and strategic benefits. He emphasizes its role in revenue growth and long-term value creation.
Just recently, Hut 8 and Bitmain announced the U3S21EXPH, a next-generation ASIC miner capable of 860 terahash per second (TH/s). It also features direct liquid-to-chip cooling technology. This miner is expected to be deployed by Q2 2025, with the potential for Hut 8 to transition to self-mining.
By improving its debt-to-equity ratio, Hut 8 has reduced its debt servicing costs and bolstered its credit standing.
Bitcoin’s network hashrate and difficulty reached record levels in early September. Based in Miami, Hut 8 operates 10 Bitcoin mining sites across Alberta, New York, and Texas, along with five high-performance computing centers in British Columbia and Ontario and four power generation facilities in Ontario.
In March, the company closed its Drumheller, Alberta, facility due to high energy costs and outages but plans to open a new power generation asset in Texas.
