Hut 8, a prominent Bitcoin mining company, had a great year in 2024, earning $331 million in profit. The company benefited from Bitcoin’s rising price, which helped increase its earnings. Even though the crypto market had ups and downs, Hut 8 stayed strong by expanding its mining business and improving its finances.
Hut 8’s Bitcoin Reserves and Growth Plans
Hut 8 ended 2024 with a massive stash of 10,171 Bitcoin (BTC) worth almost $1 billion. This was after the Miami-based crypto miner purchased 990 BTC in late December.
However, most of this reserve has been used as collateral to buy more ASIC mining machines, reinforcing the company’s long-term mining ambitions.
The company also made significant strides in reducing its operational costs. In the fourth quarter of 2024, its energy expenses per megawatt-hour dropped by 30%, bringing the price down to $31.63.
By December, Hut 8 was managing about 1,020 megawatts, with plans to increase this to 12,300 MW. The crypto miner purchased 31,145 Bitmain Antminer S21+ machines last November.
This is expected to increase its self-mining hashrate by 66% by the first quarter of 2025. Additionally, Hut 8 has expanded its partnership with Bitmain, a major Bitcoin mining company.
It signed a colocation deal that could generate $125 million in yearly revenue. Both mining companies are also developing a new ASIC miner to improve Hut 8’s mining efficiency.
Hut 8 Ventures Into AI
Hut 8 is expanding into the artificial intelligence (AI) sector alongside its Bitcoin accumulation strategy. In 2024, its subsidiary, Highrise AI, signed a five-year deal to offer GPU-as-a-Service.
Hut 8 received a $150 million investment from Coatue to support this project, showing its commitment to AI technology.
This technology is important for AI computing, and Hut 8 revealed that this GPU-as-a-service division will officially start generating revenue. With this AI move, the Bitcoin mining firm is diversifying its investments in the space.
Market Reaction and Stock Performance
Even though Hut 8 is doing well financially, its stock dropped by 7.25% earlier, bringing its value to $1.5 billion. Still, the company is in a strong position with its growing Bitcoin reserves, AI projects, and improved mining setup.
Hut 8 is investing in both Bitcoin and AI as their demand increases. The company expects this strategy to lead to another successful year.
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