Hut 8 has secured the winning position in a competitive bankruptcy auction for two Texas-based data center properties previously operated by cryptocurrency mining company Poolin. The successful proposal totaled $140 million, comprising cash and additional considerations.
The final bid represents nearly triple the value of initial baseline offers. Thor CALAP, the stalking-horse bidder, had established opening bids of $15 million for the Pyote location and $37 million for the Tarbush facility, totaling $52 million combined.
Additional competing bidders participated in the auction process. DigiPower X submitted a $36.5 million proposal for the Pyote property, while Pecos Industrial Development, representing AI infrastructure company Fluidstack, offered $100.5 million for the Tarbush site.
Bankruptcy Court Approval Pending
The transaction requires approval from the U.S. Bankruptcy Court for the District of New Jersey before finalization. Judicial proceedings are scheduled for September 29 to determine whether the sale will be authorized.
Poolin initiated Chapter 11 bankruptcy proceedings in July, carrying total liabilities of approximately $173.1 million. The majority of this debt, roughly $163.7 million, consists of unsecured obligations owed to Poolin Wallet customers following suspension of withdrawal services in 2022. Operations at both Texas facilities had ceased approximately on July 10.
Strategic Expansion in AI Infrastructure
The acquisition aligns with Hut 8's broader transition from exclusive bitcoin mining operations toward comprehensive AI infrastructure services. Upon receiving approval, Hut 8 would incorporate more than 1 gigawatt of AI-ready capacity into its existing portfolio.
According to Hut 8's Q2 financial report, the company's development pipeline reached approximately 8.7 gigawatts, reflecting an increase of about 300 megawatts from the previous quarter. The company has secured 949 megawatts of contracted AI infrastructure capacity, representing an estimated $26.6 billion in total contract value spanning its River Bend and Beacon Point facilities.
Beacon Point recently received conditional Base Load classification from ERCOT, allowing the facility to maintain its designated power allocation during the grid operator's ongoing evaluation process.
Analyst Coverage
UBS analyst Ryan Gravett launched coverage on Hut 8 this week, assigning a Buy rating alongside a $143 price objective. Gravett highlighted the strength of Hut 8's leased portfolio, emphasizing favorable economic terms paired with high-quality tenant creditworthiness, and noted the company's reduced vulnerability to delivery penalties and construction cost escalations relative to industry competitors.
Identified near-term catalysts include final Base Load designation approval at Beacon Point, initial power-up operations at the facility, advancement on capacity deployment schedules, and announcements regarding new lease agreements.
