Hut 8 (HUT) has flipped the switch on its ‘Vega’ data center in the Texas Panhandle, the first step toward bringing online an estimated 15 EH/s of Bitmain U3S21EXPH ASICs under a colocation agreement with Bitmain.
Five football fields long, the facility services a rack-based, direct-to-chip cooling system supporting up to 180 kW per rack, 50% denser than typical GPU setups. The facility’s all-in estimated cost ran between $430,000-450,000 per megawatt, Hut 8 states in the release.
Under the ASIC colocation deal, Bitmain will consume the full 15 EH/s deployment, generating approximately $110–120 million in annualized revenue based on ERCOT forward prices and anticipated facility uptime.
The agreement also grants Hut 8 the option to purchase all or part of the hosted fleet in up to three tranches at a fixed price, exercisable within six months of each tranche’s energization. The option would allow Hut 8’s majority owned subsidiary, American Bitcoin, to scale self-mining capacity from 10 EH/s to 25 EH/s if exercised.
Hut 8 acquired the site in July 2024, meeting its targeted Q2 2025 launch. It also follows the carve-out of Hut 8’s bitcoin-mining fleet into American Bitcoin.
American Bitcoin was launched on March 31, through a strategic joint venture between Hut 8 and American Data Centers, Inc., a company backed by Eric Trump and Donald Trump Jr. under the American Data Centers banner. In the arrangement, Hut 8 contributed nearly its entire miner fleet in exchange for an 80% ownership stake, while American Data Centers – renamed American Bitcoin – holds the remaining interest. The new entity, led by Executive Chairman Mike Ho, CEO Matt Prusak, and Chief Strategy Officer Eric Trump, aims to become the world’s largest pure-play Bitcoin miner with over 50 EH/s of capacity and to build a substantial strategic Bitcoin reserve.
