Hut 8 purchases 31,000 miners, aiming to boost hashrate by 66%
Company's data center
Mining company Hut 8 has signed an agreement with Bitmain to purchase 31,145 Antminer S21+ miners. The delivery of these devices is expected at the beginning of the first quarter of 2025.
According to the miner’s official website, Hut 8 is purchasing the Antminer S21+ units at a rate of $15 per terahash. The new equipment will increase the company’s average fleet efficiency from 31.7 to 19.9 J/TH and boost its hashrate by approximately 66%.
The new equipment will be distributed across several of Hut 8's 11 sites.
"After careful modeling, we selected the Bitmain Antminer S21+ for our fleet upgrade due to its favorable return on investment compared to other, more efficient models requiring higher capital investment," commented Hut 8 CEO Asher Genut.
Why miners are upgrading their equipment
Mining companies are actively upgrading their equipment for several key reasons. First, as Bitcoin network complexity increases, more powerful and energy-efficient devices are required to remain competitive. This is especially critical given rising electricity costs, one of the largest expenses for mining companies.
Second, following the halving event at the beginning of 2024, mining revenues have sharply decreased. Now, only companies with highly efficient equipment can remain profitable. Upgrading enables mining firms to continue generating profit despite the reduced revenue.
Meanwhile, two major mining companies, Marathon Digital Holdings and Riot Platforms, reported record monthly Bitcoin production levels in October 2024.
