Hut 8 Mining Targets Gaming, Web3 With Cloud Services Expansion
- Hut 8 Mining recently acquired five data centers across Canada from TeraGo
- The company has finalized a multi-year partnership with Enthusiast Gaming Wednesday
One of North America’s largest bitcoin miners aims to grow its cloud computing business.
Hut 8 Mining, fresh from a recent acquisition, is looking to diversify its business beyond digital asset mining, said Sue Ennis, vice president of investor and business development, at Blockworks.
The Toronto-based company mined 289 bitcoins last month and held 6,115 bitcoins on its balance sheet as of February 28. Hut 8 has over 35,000 mining machines and 109 megawatts of power.
“As the industry has continued to mature, we’ve begun to ask ourselves…what’s next?” said Ennis.
Hut 8 Mining completed its purchase of wireless connectivity company TerraGo in late January for C$30 million, or $23.7 million. The deal brought five Canadian TerraGo data centers to Hut 8.
The idea is to build scalable cloud services that offer an alternative to cloud computing giants such as Amazon Web Services, Google Cloud and Switch, according to Ennis.
Data centers can have up to 40% unused cloud space at any one time, she said, which Hut 8 plans to use for Web3 and blockchain-based gaming infrastructure.
This includes game rendering, non-fungible token (NFT) storage, node infrastructure management, and general storage for exchanges, as well as Layer 1 and Layer 2 protocols.
“We’re sort of doubling down on these Amazon web services for web3 and blockchain gaming,” Ennis said. “We’re still going to be miners, but we’re just focused on building and rooting deeper into the current full ecosystem.”
The company recently entered into a multi-year partnership with Enthusiast Gaming. In exchange for the video game company integrating Hut 8 content into its gaming communities, the crypto company will host Enthusiast Gaming content in its data centers.
“Hut 8 has established itself as an innovative leader in bridging digital asset mining with the traditional data center industry, and now serves both high-performance traditional applications and applications in the data center space. games and blockchain,” Adrian Montgomery, CEO of Enthusiast Gaming, said in a statement.
The alliance boosts Hut 8’s visibility among Enthusiast Gaming’s 300 million Gen Z and Millennial viewers, said Ennis, the majority of whom invest in stocks and crypto.
“It’s the ability [for gamers] to get deeper connections and more attention to our business and what we do, and ultimately hopefully buy our shares in the market, because we’re now where a lot of our retail investors are,” said she noted.
The company also has “global ambitions,” Ennis said, including acquisitions in Dubai and Asia.
“There are so many entrants that have entered this bull market,” she said. “We think this year is still going to be a bit volatile, we think it’s going to be a period of consolidation… so we’re definitely looking and ready to shop around.”
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