Shares of Hut 8 (HUT) climbed nearly 30% on Wednesday after the firm disclosed a 15-year lease valued at $9.8 billion for an expansive AI data center project in Texas. The agreement includes options that could elevate its total value to approximately $25.1 billion should all renewal terms be activated.
Initially purposed for bitcoin mining, Beacoin Point’s campus has been restructured to cater to AI infrastructure due to surging demand for high-performance computing capabilities, as stated by Hut 8.
This transition aligns with a broader trend where publicly traded bitcoin miners are shifting focus amid challenging financial conditions, incurring losses of around $19,000 per coin mined. These companies are increasingly moving towards artificial intelligence and high-performance computing infrastructure, with over $70 billion in contracts signed and projections indicating that some may earn up to 70% of their revenue from AI by the end of 2026.
Hut 8 has successfully commercialized the initial phase at its Beacon Point campus in Nueces County through a lease involving 352-megawatt IT capacity with a major investor, supporting workloads for AI training and inference. This marks Hut 8’s second significant deal concerning AI data centers.
The new agreement boosts Hut 8’s total contracted AI data center capacity to 597 MW, elevating the aggregate base-term contract value to around $16.8 billion. The company anticipates this lease will contribute approximately $655 million in annual net operating income upon stabilization.
This funding stream is expected to bolster Hut 8’s AI infrastructure platform, fostering growth at Beacon Point and enhancing its broader pipeline. With 1,000 MW of utility capacity secured at the campus, initial energization is projected for Q1 2027.
“Beacon Point exemplifies why we start with power and sustain flexibility across various markets,” remarked Chief Executive Asher Genoot. “Operating within multiple applications allows us to underwrite assets that single-use developers cannot, enabling redirection towards higher-value commercial pathways as demand shifts.”
The project is being developed in accordance with NVIDIA’s DSX reference architecture, in collaboration with partners such as American Electric Power, Vertiv, and Jacobs. Delivery of the first data hall is anticipated by Q3 2027.