Hut 8 Moves 6,400 Rigs, Expands Focus on AI and High-Performance Computing

Hut 8 Mining, a prominent cryptocurrency mining company, is embracing the growing demand for artificial intelligence (AI) and high-performance computing as it undergoes the relocation of 6,400 rigs previously inactive at its North Bay site in Ontario, Canada.

Due to an ongoing legal dispute with its energy supplier Validus Power, Hut 8 had suspended operations at its mining facility since November 2022. While the company refrained from commenting on the court case, it confirmed that the 6,400 miners are being moved to Texas in an effort to reactivate its idle equipment.

Hut 8 expects these miners to become operational by the end of July 2023, delivering a capacity of 600 petahashes per second. This move will increase Hut 8’s total installed hash rate to 3.2 exahashes per second.

To facilitate this relocation, Hut 8 has secured a three-month hosting agreement, with plans to renew it on a month-to-month basis. In a previous move, the company relocated 988 miners from North Bay to its Medicine Hat facility in Alberta, Canada, back in March 2023.

Hut 8’s CEO, Jaime Leverton, also commented on the current state of the cryptocurrency mining industry, acknowledging the challenging market conditions it has faced over the past 18 months. However, Leverton expressed optimism, noting that the industry has rebounded more strongly than anticipated, partly due to Hut 8’s foray into AI and high-performance computing.

The growing interest and investments in AI and high-performance computing are evident. Companies like Inflection AI, based in Palo Alto, recently secured a $1.8 billion funding round led by Microsoft and Nvidia, with a focus on constructing a powerful Nvidia H100 Tensor GPU cluster comprising 22,000 units.

In line with this shift, Hut 8 is deploying its infrastructure to power services and solutions beyond its Bitcoin mining operations. Leverton highlighted a significant five-year agreement with British Columbia’s Interior Health authority to provide computer infrastructure and hosting services. Additionally, Hut 8 conducted a successful case study in collaboration with XYZ AI, a 3D generative AI firm.

As Hut 8 strategically combines its mining expertise with AI and high-performance computing, it aims to capitalize on the growing demand and unlock new opportunities in the evolving digital landscape.

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