Hut 8 and Bitmain Unveil Revolutionary BTC Miner with Liquid Cooling Technology

Hut 8 Partners with Bitmain for a Game-Changing ASIC Miner

Block reward miner Hut 8 (NASDAQ: HUT) has joined forces with Bitmain to introduce a groundbreaking BTC ASIC miner. This partnership has evolved over the years, focusing on enhancing commercial and technical aspects to gain a competitive edge in a challenging market.

The U3S21EXPH miner is the first commercial ASIC miner from Bitmain to incorporate direct liquid-to-chip (DLC) cooling. This innovative cooling technique, frequently utilized in high-performance computing, circulates a liquid coolant through channels that directly contact hot components, significantly improving energy efficiency and enabling higher rack densities.

Hut 8's latest miner will predominantly use components commonly found in data centers, including advanced racks and cooling systems, which paves the way for better supply chain synchronization across BTC mining and HPC data centers.

Scheduled for deployment in Q2 2025, the U3S21EXPH aims for an initial hosting capacity of 15 exahash per second (EH/s), allowing Hut 8 to host the miners for Bitmain with an option to purchase them at a fixed price. This strategy helps Hut 8 mitigate capital expenses while testing the ASICs before final acquisition, as explained by CEO Asher Genoot.

Genoot highlighted the dual benefits of this structure: it safeguards against losses with a fixed-price hosting revenue stream while offering significant option value through a purchase option. This model is seen as a strategic approach to leverage the lucrative economics of next-generation machines while minimizing upfront investments, especially as Hut 8 continues to explore growth in AI infrastructure.

In a year marked by challenges in the BTC mining sector, the halving event has left miners grappling with reduced block rewards, now at 3.125 BTC. The surge in energy prices has added to the financial strain, making it increasingly difficult for miners to achieve profitability. In contrast, BSV transaction processors benefit from both block rewards and transaction fees, presenting a more sustainable business model.

In the second quarter of 2024, Hut 8 reported a staggering $72 million net loss, a 3,600% increase from the previous year. Competitors like CleanSpark and Bitfarms have also reported significant losses, underscoring the industry's struggles.

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