Hut 8 (HUT) Stock Emerges Victorious in $140M Texas Data Center Acquisition Battle

Key Takeaways

Table of Contents

Hut 8 emerged victorious in the competitive bankruptcy auction for Poolin’s dual Texas data center facilities with a $140 million offer.
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, with proceedings scheduled for September 29.
Poolin entered Chapter 11 bankruptcy protection in July, carrying approximately $173 million in outstanding obligations, primarily to wallet holders.
UBS analyst Ryan Gravett launched coverage on Hut 8 with a Buy recommendation and established a $143 price objective.

Hut 8 has secured the winning position in a competitive bankruptcy auction targeting two Texas-based data center properties previously operated by cryptocurrency mining company Poolin. The successful proposal totaled $140 million, comprising cash and additional considerations.

Hut 8 Corp., HUT

This final bid represents nearly triple the value of the initial baseline offers. Thor CALAP established the stalking-horse bids at $15 million for the Pyote location and $37 million for the Tarbush facility, totaling $52 million when 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.

Hut 8’s bid surpassed all competing proposals. However, the transaction remains pending final authorization.

Bankruptcy Court Authorization Required

The transaction must receive 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, including two affiliated U.S. entities. Operations at both Texas facilities 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 owed to Poolin Wallet customers following the suspension of withdrawal services in 2022.

Both the Pyote and Tarbush properties became part of the bankruptcy estate and underwent a court-supervised auction process designed to maximize creditor recovery.

Strategic AI Infrastructure Expansion

This acquisition aligns with Hut 8’s broader strategic transformation. The company has been systematically transitioning 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. This represents a substantial expansion for a company experiencing rapid growth.

According to the company’s Q2 financial report, Hut 8’s development pipeline reached approximately 8.7 gigawatts, reflecting an increase of about 300 megawatts from the previous quarter. The company has also 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.

CEO Asher Genoot characterized market conditions during the Q2 earnings conference call. “Demand is robust,” he stated. “Everyone wants capacity.”

Investment analysts are taking 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 the strength of Hut 8’s leased portfolio, emphasizing favorable economic terms paired with high-quality tenant creditworthiness. He also noted the company’s reduced vulnerability to delivery penalties and construction cost escalations relative to industry competitors.

The analyst identified several near-term catalysts worth monitoring. These 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.

Currently, the Poolin auction outcome represents the accepted bid rather than a completed transaction. The bankruptcy court’s September 29 hearing will ultimately decide whether Hut 8 successfully acquires the Pyote and Tarbush properties to expand its developing data center infrastructure network.

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