Hat 8 (shed), Public Bitcoin BTC$109,802.43 Mining and energy infrastructure companies spiked Tuesday after revealing plans to more than double the company's electricity capacity.
According to the press, the plan includes the development of four new sites across the United States, exceeding 1.5 gigawatts (GW), and the total power capacity has expanded by more than 2.5 GW in 19 locations, according to a press release.
The stock rose more than 10%, reaching just seven months high, shy at $26 per share, despite the price of Bitcoin remaining in a slump of less than $110,000.
Data center companies enjoy updated investors' interest as demand for computing power to drive innovation in artificial intelligence rises. Recently, Tech Giant Google has acquired a minority stake in Bitcoin miner Terawulf as part of a $3.2 billion AI infrastructure deal.
“This expansion will make the critical step in the evolution of Hat8 one of the world's largest energy and digital infrastructure platforms,” Hut 8 CEO Asher Genoot said in a press release.
The company said it had reclassified the project from “exclusiveness” to “development.” That is, he said he is securing a transaction between land and power, working on design and commercialization.
To fund the project, the company plans to create liquidity of up to $2.4 billion from a variety of sources. This includes borrowings for $10,000 BTC stash worth around $1.1 billion, a $200 million revolving credit line, and $130 million facilities from Coinbase, as well as recently introduced borrowings for $1 billion facilities in the market.
Investment Bank Roth Capital considers the expansion plan as a “significant step-up” and could potentially bring the site online and contract with AI and high-performance computing.
Read more: Bitcoin Mining Face “Incredibly Difficult” Market as Power becomes a Real Currency
