Hut 8 Bets $140M on Texas Data Centers to Fuel AI Ambitions
Court filings reveal that Bitcoin mining firm Hut 8 has placed a winning bid of $140 million to acquire two data center sites in Texas from bankrupt peer Poolin. The deal covers both the Pyote and Tarbush facilities, with consideration comprising cash and other forms of payment.
Deal Mechanics and Competing Bids
The sale is contingent upon approval from the U.S. Bankruptcy Court for the District of New Jersey, with a hearing scheduled for September 29. Hut 8's offer substantially exceeded competing proposals:
- Thor CALAP: The initial stalking horse bidder offered a combined $52 million for the two sites.
- DigiPower X: Bid $36.5 million specifically for the Pyote site.
- Fluidstack's Designee: Via Pecos Industrial Development, bid $100.5 million for the Tarbush site.
Context of the Acquisition
Poolin and two of its U.S. affiliates filed for Chapter 11 bankruptcy protection in July, having previously ceased mining and hosting operations at its Texas sites. Court documents indicate total debts of approximately $173.1 million, with the majority (~$163.7 million) being unsecured IOUs owed to users of its platform following withdrawal freezes in 2022.
Strategic Pivot Towards AI Infrastructure
This acquisition aligns with Hut 8's strategic shift from pure-play Bitcoin mining. The company is actively diversifying into AI computing infrastructure. Its Q2 2023 earnings report, released in August, showed a development pipeline of approximately 8.7 gigawatts, an increase of about 300 megawatts from the previous quarter. Securing these Texas data center assets provides critical physical infrastructure to support its growing AI services portfolio.