Bitcoin miner Hut 8 is expanding its partnership with Bitmain to introduce a new ASIC miner with direct liquid-to-chip cooling, set to deploy in Q2 2025.

Miami-headquartered crypto mining firm Hut 8 has expanded its partnership with Bitmain, announcing the upcoming launch of the U3S21EXPH, a next-generation ASIC miner capable of reaching up to 860 TH/s.

In a Sept. 19 press release, the company the miner, which is scheduled for deployment in Q2 2025, is the first mass-commercialized ASIC model to feature direct liquid-to-chip cooling in a U-form factor.

“We believe this model represents a more thoughtful approach to capturing the lucrative economics offered by next-generation machines, reducing upfront capital requirements while we continue to pursue growth initiatives in AI infrastructure.”

Asher Genoot, Hut8 chief executive officer

Under the hosting agreement, Hut 8 has the option to purchase all or a portion of the hosted miners in up to three tranches at a fixed price within six months of deployment. If Hut 8 exercises the option in full, the company’s self-mining hashrate is expected to increase from 5.6 EH/s to 20.6 EH/s, the press release reads.

The agreement is designed to minimize upfront capital expenditures and provide flexibility for future purchases, allowing Hut 8 to assess market conditions “before committing additional capital,” per the document.

The news comes after Hut 8 secured a $150 million investment in June from Coatue Management to accelerate its artificial intelligence infrastructure development. At the time, Hut 8 said the investment was made as “many traditional data center operators are failing to meet the surging demand for AI compute capacity due to power shortages.”

CleanSpark has announced plans to acquire seven Bitcoin mining facilities in Knoxville, Tennessee, for $27.5 million. 

The purchase will add over 85 megawatts of available capacity, and the company expects to close the deals by Sept. 25, according to a press release. 

This move will increase CleanSpark’s hash rate by 5 exahashes per second, a 22% jump from its current capacity. The company recently surpassed 23 EH/s and aims to reach 37 EH/s by the end of 2024.

In August, CleanSpark acquired a Bitcoin mining site in Wyoming despite national security concerns raised earlier in the year. The acquisition proceeded even after President Biden’s emergency order to halt operations at sites near sensitive military installations due to potential espionage risks.

Analyst thoughts

Analysts from H.C. Wainwright view CleanSpark’s acquisition of the seven Tennessee Bitcoin (BTC) mining facilities as a strong strategic move, highlighting the company’s ability to source high-quality infrastructure at a favorable valuation.

With this acquisition, CleanSpark can focus on integrating the latest S21 pro miners to maximize its output. The company also plans to use a community-oriented approach to expand operations in Tennessee.

With a price of approximately $323,500 per megawatt, CleanSpark has secured the lowest price per developed MW for any mining deal in 2024, according to the firm’s BTC Miner M&A Deal Tracker, Wainwright analysts noted.

CEO Zach Bradford highlighted Tennessee’s favorable political and energy environment compared to Georgia, where CleanSpark operates 500 MW of facilities.

“Tennessee has a similar political and energy environment to Georgia, where we’ve deployed nearly $1B of capital and operate nearly 500 MW… applying the same winning community-oriented strategy to The Volunteer State is our plan as we expand our presence in the region and continue showcasing how Bitcoin can benefit the local power grid and communities where we’re located.”

Zach Bradford, CleanSpark CEO

CleanSpark’s stock is currently trading at $9.30 per share, but analysts see this news as a buying opportunity and reiterated their “Buy” rating on CleanSpark, maintaining a $27 price target.