Hut 8 Corp. (Nasdaq | TSX: HUT), a leading Bitcoin mining company, has announced an exciting expansion of its partnership with BITMAIN Technologies Ltd., the world’s largest producer of Bitcoin mining servers.
This collaboration will bring the U3S21EXPH, a next-generation ASIC miner, to the market, marking a new chapter in the evolution of Bitcoin mining. The U3S21EXPH is set to become the first mass-commercialized miner to feature direct liquid-to-chip (DLC) cooling in a U form factor, revolutionizing the way Bitcoin miners operate.
Hut 8’s decision to deploy this miner comes as part of a broader strategic initiative aimed at enhancing its computing power, not just in the Bitcoin mining space, but also within the AI compute sectors.
By combining state-of-the-art cooling technology with a more scalable data center model, Hut 8 is paving the way for significant advancements in both industries.
Deploying the U3S21EXPH: The Next Frontier of Bitcoin Mining
The U3S21EXPH is slated for deployment in the second quarter of 2025, with an initial hosting agreement managing approximately 15 exahash per second (EH/s).
This deployment will be made possible through custom-built data center infrastructure developed in-house by Hut 8. The move is part of the company’s commitment to expand its operational footprint, aligning with the evolving demands of the Bitcoin mining and AI sectors.
Asher Genoot, CEO of Hut 8, expressed enthusiasm for this partnership, stating, “Our collaboration with BITMAIN has allowed us to advance our thinking on ASIC compute and create a more scalable model for data center design as we expand our footprint.”
The new miner’s U form factor will make it “rack-ready,” allowing for easy integration into traditional data center hardware, thus bridging the gap between Bitcoin mining and AI data center infrastructure.
The introduction of DLC cooling in this new form factor is what makes the U3S21EXPH particularly innovative.
While DLC cooling has long been used in high-performance computing (HPC) data centers, its application in Bitcoin mining represents a significant leap forward in terms of energy efficiency and scalability.
Efficiency and Performance: Setting New Standards
The U3S21EXPH is designed to achieve unprecedented efficiency in Bitcoin mining. Boasting an efficiency of 13 joules per terahash, this miner is capable of producing up to 860 terahash, setting new standards for performance in the industry.
By utilizing DLC cooling, the miner can operate more efficiently, making it a more cost-effective and scalable solution for large-scale Bitcoin mining operations.
Traditionally, DLC cooling has been reserved for HPC data centers, where cooling requirements are far more stringent due to the high processing power involved. However, the integration of this technology into Bitcoin mining is expected to significantly reduce energy consumption and lower operational costs, making mining more profitable and sustainable in the long run.
Bridging the Gap Between Bitcoin Mining and AI Compute
Hut 8’s partnership with BITMAIN is more than just about launching a new miner.
It represents a broader vision to converge Bitcoin mining and AI compute technologies. According to Genoot, “This innovation bridges critical engineering gaps between Bitcoin mining and AI data center infrastructure in both form factor and cooling technology.”
This convergence could unlock substantial synergies, providing Hut 8 with the flexibility to adapt to the demands of both sectors in the future.
The U3S21EXPH’s rack-ready design enables it to fit seamlessly into traditional data centers, allowing companies to deploy it alongside AI compute hardware. This versatility is key to Hut 8’s strategy, as the company continues to explore ways to integrate ASIC compute into the broader AI data center landscape.
BITMAIN’s Perspective on the Partnership
The partnership between Hut 8 and BITMAIN is built on a foundation of mutual respect and a shared vision for the future of Bitcoin mining. Irene Gao, Vice President of Mining at BITMAIN, emphasized the importance of Hut 8’s technical expertise in advancing this collaboration.
“Asher and Mike have been invaluable thought partners to BITMAIN since the early days of US Bitcoin Corp.
Hut 8’s technical expertise, operating strength, and track record of innovation made this partnership a natural evolution of our relationship as we began the journey of developing next-generation ASIC technology,” she said.
BITMAIN has long been a dominant player in the Bitcoin mining hardware industry, and its partnership with Hut 8 strengthens both companies’ positions in the market. The development of the U3S21EXPH represents a major step forward, not just for BITMAIN and Hut 8, but for the entire Bitcoin mining ecosystem.
Financial Flexibility: Mitigating Risk and Maximizing Growth
The commercial agreement between Hut 8 and BITMAIN provides both companies with a flexible framework to assess market conditions before making further investments.
The agreement includes a fixed hosting fee and a purchase option for Hut 8 to buy the hosted machines in up to three tranches. This structure allows Hut 8 to minimize financial risk while maintaining the option to significantly expand its self-mining capacity.
If Hut 8 decides to exercise its purchase option, the company could see its self-mining capacity grow from 5.6 EH/s to 20.6 EH/s, providing a massive boost to its operational capabilities. This flexibility is crucial for a company like Hut 8, which operates in an industry where market conditions can change rapidly.
The Future of Bitcoin Mining and AI Compute
As Bitcoin mining continues to evolve, companies like Hut 8 are leading the charge in integrating cutting-edge technology to improve efficiency, scalability, and profitability.
The launch of the U3S21EXPH is just one example of how innovation in cooling technology and data center design is shaping the future of the industry. By leveraging its partnership with BITMAIN, Hut 8 is positioning itself at the forefront of this technological revolution, not just in Bitcoin mining, but in the broader world of AI compute as well.
With the second quarter of 2025 just around the corner, the deployment of the U3S21EXPH is eagerly anticipated by both investors and industry experts alike. A
s Hut 8 continues to expand its footprint, the company is well-positioned to play a leading role in the next phase of Bitcoin mining and AI infrastructure development. The collaboration between Hut 8 and BITMAIN signals a bright future for both companies and underscores the importance of innovation in driving the industry forward.