Key Takeaways
- Hut 8 emerged as the winning bidder at Poolin’s bankruptcy auction, offering $140 million for two Texas facilities.
- The winning proposal significantly exceeded Thor CALAP’s initial stalking-horse bids totaling $52 million.
- Final approval from a New Jersey bankruptcy court is required at a September 29 hearing.
- Poolin entered Chapter 11 bankruptcy in July owing approximately $173 million, primarily to wallet platform users.
- UBS launched coverage on Hut 8 this week, assigning a Buy rating with a $143 price objective.
Hut 8 has secured the highest bid in a competitive bankruptcy auction for two data center facilities in Texas previously operated by cryptocurrency mining company Poolin. The company’s winning proposal totaled $140 million in cash and additional considerations.
This figure represents approximately triple the initial opening bids. Thor CALAP had established stalking-horse proposals of $15 million for the Pyote location and $37 million for the Tarbush facility, creating a combined baseline of $52 million.
Additional competing bids emerged during the auction. DigiPower X submitted a $36.5 million proposal for Pyote, while Pecos Industrial Development, representing AI infrastructure company Fluidstack, offered $100.5 million for Tarbush.
Hut 8’s proposal surpassed all competing offers. However, the transaction remains pending formal approval.
Bankruptcy Court Authorization Required
The transaction must receive clearance from the U.S. Bankruptcy Court for the District of New Jersey before finalization. A judicial hearing has been calendared for September 29 to review the proposed sale.
Poolin initiated Chapter 11 bankruptcy proceedings in July, alongside two affiliated U.S. entities. Operations including mining and hosting services at both Texas locations had ceased approximately on July 10.
Bankruptcy documentation reveals total liabilities of roughly $173.1 million. The majority of this debt, approximately $163.7 million, consists of unsecured obligations to Poolin Wallet users following the suspension of withdrawal capabilities in 2022.
The Pyote and Tarbush properties became part of the bankruptcy estate and underwent a court-monitored auction process designed to maximize creditor recovery.
Hut 8’s Strategic Pivot Toward AI
This acquisition aligns with Hut 8’s broader strategic transformation. The organization has been systematically transitioning from traditional bitcoin mining operations toward AI infrastructure development.
Upon approval, Hut 8 would gain more than 1 gigawatt of AI-ready capacity. This represents a substantial expansion for a company experiencing rapid growth.
Hut 8’s development pipeline reached approximately 8.7 gigawatts according to its Q2 financial report, reflecting an increase of roughly 300 megawatts from the previous quarter. The company has also secured 949 megawatts of committed AI infrastructure capacity, representing an estimated contract value of $26.6 billion spanning its River Bend and Beacon Point facilities.
Beacon Point recently received provisional Base Load classification from ERCOT, allowing it to maintain its requested power allocation during the grid operator’s ongoing evaluation process.
CEO Asher Genoot characterized market conditions during the Q2 earnings conference call. “Demand is robust,” he stated. “Everyone wants capacity.”
Financial analysts have taken notice of these developments. UBS analyst Ryan Gravett launched coverage on Hut 8 this week, assigning a Buy rating alongside a $143 price objective.
Gravett highlighted Hut 8’s leased asset portfolio, which features attractive economics paired with high-quality credit tenants. He also noted reduced vulnerability to delivery penalties and construction budget overruns relative to industry competitors.
The analyst identified several near-term catalysts worth monitoring. These include permanent Base Load designation at Beacon Point, initial energization milestones, advancement on capacity delivery schedules, and announcements of additional lease agreements.
Currently, the Poolin auction outcome represents a successful bid rather than a completed transaction. The court’s September 29 hearing will ultimately decide whether Hut 8 can finalize the addition of the Pyote and Tarbush facilities to its expanding data center operations.
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