Hut 8 has been selected as the winning bidder for two data center facilities in Texas previously operated by the bankrupt cryptocurrency mining firm Poolin. The company submitted a $140 million offer consisting of cash and other consideration for the Pyote and Tarbush sites.

The proposed transaction remains subject to approval by the U.S. Bankruptcy Court for the District of New Jersey. A sale hearing is scheduled for September 29.

Auction Details and Competing Offers

Hut 8’s bid substantially exceeded the initial stalking-horse offers totaling $52 million submitted by Thor CALAP. That firm had proposed $15 million for the Pyote campus and $37 million for Tarbush.

Additional competing proposals included a $36.5 million backup bid from DigiPower X for the Pyote site. Pecos Industrial Development, acting as a designee of AI infrastructure firm Fluidstack, submitted a $100.5 million offer for Tarbush.

Court filings confirmed Hut 8’s selection following the auction process for the assets of Poolin and its U.S. affiliates.

Background on Poolin’s Bankruptcy

Poolin and two U.S. affiliates filed for Chapter 11 protection in July after ceasing mining and hosting operations at the Texas locations. Court documents listed approximately $173.1 million in total obligations.

Of that amount, roughly $163.7 million consisted of unsecured claims tied to Poolin Wallet users. The company had frozen withdrawals in 2022, generating significant liabilities that contributed to the restructuring.

The two West Texas facilities had supported Bitcoin mining activities prior to the shutdown.

Hut 8’s Expansion Strategy

The acquisition would expand Hut 8’s infrastructure holdings in Texas at a time when the company has shifted emphasis toward artificial intelligence-related capacity. In its second-quarter results, Hut 8 reported an approximately 8.7-gigawatt development pipeline.

The firm also disclosed 949 megawatts of contracted IT capacity for AI infrastructure, with associated base-term contracts valued at an estimated $26.6 billion. Projected average annual net operating income from these contracts exceeded $1.75 billion, supported by $7.5 billion in investment-grade financing secured to date.

Hut 8 already maintains about 1.5 gigawatts of deployed or developing power capacity across various Texas sites. Adding the Pyote and Tarbush assets would further increase that footprint.

Broader Market Context for Power Assets

Demand for sites with existing grid connections has intensified amid growth in AI computing requirements. Industry analyses have noted that data centers account for a large share of large-load interconnection queues in regions such as ERCOT, while available capacity in major North American markets has tightened.

Valuations for fully leased AI facilities have reached levels significantly higher than those for unleased mining capacity. Conversion costs from mining infrastructure to AI-grade facilities are estimated in the range of several million dollars per megawatt, though potential revenues from AI workloads can exceed those from Bitcoin mining on a per-megawatt basis.

Texas authorities have increased oversight of data center development. In recent weeks, state officials directed a temporary halt on certain permits pending reviews of grid reliability, water use, and community impacts. Hut 8 has previously stated its support for responsible development practices in the state.

Global projections indicate substantial increases in data center electricity demand and capital spending in the coming years, elevating the strategic value of power-ready locations.

The September 29 court hearing will determine whether the Hut 8 transaction can proceed to closing.