Key Takeaways
- Hut 8 emerged victorious in the bankruptcy auction for Poolin’s 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 at a September 29 hearing.
- Poolin entered Chapter 11 bankruptcy protection in July, carrying approximately $173 million in outstanding obligations, primarily to wallet users.
- UBS analysts launched coverage on Hut 8 with a Buy recommendation and $143 price objective this week.
Hut 8 has secured the winning position in a competitive bankruptcy auction involving two Texas-based data center properties previously operated by cryptocurrency mining company Poolin. The company’s successful proposal totaled $140 million in cash and additional considerations.
The final bid amount represents an almost threefold increase over the baseline stalking-horse proposals. Thor CALAP had established initial bids of $15 million for the Pyote property and $37 million for the Tarbush location, totaling $52 million collectively.
Additional competitors participated in the auction process. DigiPower X submitted a $36.5 million proposal for the Pyote facility, while Pecos Industrial Development, representing AI infrastructure company Fluidstack, offered $100.5 million for the Tarbush site.
Hut 8’s submission surpassed all competing bids. However, the transaction remains pending final authorization.
Bankruptcy Court Approval Required
The transaction must receive approval from the U.S. Bankruptcy Court for the District of New Jersey before completion. Court proceedings are scheduled for September 29 to determine the sale’s final disposition.
Poolin initiated Chapter 11 bankruptcy proceedings in July, alongside two affiliated U.S. entities. Operations at both Texas facilities had ceased approximately on July 10.
Documentation filed with the court indicates total liabilities of roughly $173.1 million. The majority of this amount, approximately $163.7 million, consists of unsecured obligations to Poolin Wallet users following the suspension of withdrawals in 2022.
Both the Pyote and Tarbush properties became part of the bankruptcy estate and were subjected to a court-monitored auction process designed to maximize creditor recovery.
Strategic Expansion into Artificial Intelligence
The acquisition aligns with Hut 8’s broader strategic transformation. The company has been systematically diversifying beyond traditional bitcoin mining operations toward AI infrastructure development.
Subject to court authorization, Hut 8 would acquire more than 1 gigawatt of AI-ready capacity through this transaction. This represents a substantial expansion for a company experiencing rapid growth.
According to Q2 financial disclosures, Hut 8’s development pipeline reached approximately 8.7 gigawatts, reflecting a 300-megawatt increase from the previous quarter. The company has secured 949 megawatts of contracted AI infrastructure capacity, representing an estimated $26.6 billion in aggregate contract value across its River Bend and Beacon Point facilities.
Beacon Point recently received conditional Base Load classification from ERCOT, allowing it to maintain its allocated power capacity while the grid operator completes its evaluation process.
During the Q2 earnings conference call, CEO Asher Genoot characterized market conditions succinctly: “Demand is robust,” he stated. “Everyone wants capacity.”
Financial analysts are responding positively to these developments. UBS analyst Ryan Gravett launched coverage on Hut 8 this week, assigning a Buy rating with a $143 price objective.
Gravett emphasized Hut 8’s leased asset portfolio, highlighting favorable economics combined with high-quality tenant creditworthiness. He also noted the company’s reduced exposure to delivery penalties and construction cost overruns relative to industry competitors.
The analyst identified several near-term catalysts worthy of attention, including final Base Load designation at Beacon Point, initial energization milestones, capacity delivery progress, and potential new lease agreements.
Currently, the Poolin auction result represents a winning bid awaiting final approval rather than a completed transaction. The September 29 court hearing will ultimately determine whether Hut 8 successfully incorporates the Pyote and Tarbush properties into its expanding data center portfolio.
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