Hut8, a North American Bitcoin mining firm, is experiencing increased demand for artificial intelligence (AI) and high-performance computing (HPC) as it moves to revive approximately 6,400 rigs from its inactive North Bay site in Ontario. The company has been involved in an ongoing legal dispute with its third-party energy supplier, Validus Power, over alleged contractual breaches, resulting in the suspension of operations at the facility since November 2022.
While Hut8 refrained from commenting on the details of the court case, the company confirmed that it is relocating the 6,400 miners to Texas in an effort to reactivate its idle equipment. It expects this batch of miners to be operational by the end of July 2023, adding 600 PH/s of operational capacity and increasing Hut8’s total installed hashrate to 3.2 EH/s. A three-month hosting agreement has been established for these miners, with plans for future renewals on a month-to-month basis. In March 2023, Hut8 had previously relocated 988 miners from North Bay to its Medicine Hat facility in Alberta, Canada.
Hut8 CEO Jaime Leverton
Hut8 CEO Jaime Leverton addressed the current state of the cryptocurrency mining industry amidst challenging market conditions that have persisted for the past 18 months. Leverton acknowledged the industry’s strong rebound in recent months, attributing it in part to the growing interest in HPC and AI computing. Leverton stated, ‘We have seen more momentum than originally anticipated, partly due to some of our peers following our lead in the HPC and AI computing spaces.’
The Rise of AI and HPC
The rise of AI and HPC continues to attract attention and investment. Companies like Inflection AI, based in Palo Alto, secured $1.8 billion in funding led by Microsoft and Nvidia. A portion of the investment will be used to construct a sizable Nvidia H100 Tensor GPU cluster consisting of 22,000 units.
Hut8’s Expansion into AI Computing and Hosting Services
Hut8 has also expanded its infrastructure beyond Bitcoin mining operations by offering computer infrastructure and hosting services. Leverton highlighted a new five-year agreement with British Columbia’s Interior Health authority, providing them with these services. Additionally, Hut8 conducted a case study with XYZ AI, a 3D generative AI firm.
In summary, Hut8 is capitalizing on the growing demand for AI and HPC by relocating its idle miners to Texas. The company aims to revive its equipment and increase its operational capacity. Hut8’s expansion into AI computing and hosting services showcases its diversification beyond Bitcoin mining, aligning with the broader industry trend towards AI and HPC technologies.