Key Highlights
- Hut 8’s $140 million offer secured both Pyote and Tarbush data center facilities from Poolin.
- Court approval from the U.S. Bankruptcy Court in New Jersey remains pending for the transaction.
- The winning bid surpassed Thor CALAP’s combined $52 million initial offers by nearly three times.
- Poolin filed for Chapter 11 bankruptcy protection carrying approximately $173.1 million in liabilities.
- The acquisition strengthens Hut 8’s AI infrastructure ambitions with 949 MW already contracted and 8.7 GW in development.
Hut 8 has secured the top position in a competitive bankruptcy auction for two Texas data center properties owned by defunct crypto mining operation Poolin. According to Wednesday’s bankruptcy court documents, the company presented a comprehensive $140 million package encompassing cash and additional consideration. This single agreement encompasses both the Pyote and Tarbush locations.
Bankruptcy Court Approval Pending for Transaction
The acquisition awaits final authorization from the U.S. Bankruptcy Court for the District of New Jersey. Court proceedings to evaluate the sale are set for Sept. 29. Poolin, along with two affiliated U.S. entities, filed Chapter 11 bankruptcy protection in July following the shutdown of their mining and hosting services.
Hut 8’s proposal significantly outperformed the initial proposals from Thor CALAP. Thor presented separate offers totaling $52 million: $15 million for the Pyote facility and $37 million for Tarbush. During the competitive bidding process, DigiPower X entered a $36.5 million alternative proposal for Pyote.
Pecos Industrial Development, representing AI infrastructure provider Fluidstack, submitted a substantial $100.5 million proposal for the Tarbush location. These competing proposals demonstrate strong market demand for energy-equipped data center assets. CleanSpark data center financing developments recently highlighted this trend of miners channeling investment toward computational infrastructure.
Bankruptcy documentation reveals Poolin faces approximately $173.1 million in total liabilities. The company’s obligations include roughly $163.7 million owed to Poolin Wallet users through unsecured instruments. Poolin halted wallet withdrawal services in 2022, preceding the eventual bankruptcy filing of its American operations.
Strategic Shift Toward Artificial Intelligence Computing
The pending acquisition would integrate two Texas properties into Hut 8’s expanding data center network. August reports showed Hut 8’s development pipeline reached 8.7 gigawatts, representing a 300-megawatt increase from the previous quarter. The company’s strategic evolution extends well beyond traditional bitcoin mining activities.
Similar strategic pivots are occurring throughout the mining sector. IREN’s AI infrastructure expansion has captured investor interest while the firm continues bitcoin mining alongside these new ventures. Hut 8 has already locked in 949 megawatts of contracted AI infrastructure capacity through its River Bend and Beacon Point facilities.
This industry-wide transformation includes MARA’s AI data center strategy, which represents a key component of the company’s infrastructure development roadmap. Hut 8 projects $26.6 billion in total contract value from its River Bend and Beacon Point campuses combined.
Beacon Point achieved conditional Base Load designation through ERCOT’s Batch Zero evaluation process. This designation permits the facility to maintain its requested power allocation during ERCOT’s ongoing assessment. CEO Asher Genoot emphasized during the second-quarter earnings presentation that capacity demand continues at elevated levels.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
