Key Highlights
- Shares of Hut 8 rallied 37% on Wednesday following the announcement of a $9.8 billion, 15-year lease agreement at its Beacon Point AI data center facility in Texas.
- The agreement is structured as a triple-net lease encompassing 352 MW of IT capacity with a high-grade tenant and features a 3% yearly rent increase.
- This transaction elevates Hut 8’s total AI data center contracted capacity to 597 MW, representing $16.8 billion in base-term contract value.
- First-quarter 2026 revenue reached $71 million, representing growth from $21.8 million year-over-year, though falling short of the $79.4 million analyst projection.
- The firm recorded a Q1 net loss of $253.1 million, primarily attributable to $295.7 million in unrealized digital asset losses.
Shares of Hut 8 (HUT) experienced a dramatic 37% surge on Wednesday following the company’s announcement of a major 15-year lease agreement valued at $9.8 billion for its Beacon Point AI data center facility located in Nueces County, Texas. The stock had already climbed 29% during premarket hours before regular trading commenced.
The agreement encompasses 352 megawatts of IT capacity structured as a triple-net lease with an undisclosed high-investment-grade tenant. The terms incorporate a 3% annual base rent escalation clause along with three five-year extension options, potentially increasing the total contract value to $25.1 billion should all options be utilized.
The lessee will utilize the location for dedicated AI training and inference operations at hyperscale levels. The infrastructure is being constructed according to NVIDIA’s DSX reference architecture designed for gigawatt-scale AI facilities.
Hut 8 has partnered with Jacobs serving as the engineering lead alongside Vertiv Holdings for critical infrastructure components. The first data delivery milestone is anticipated during the third quarter of 2027.
Impact on Hut 8’s Overall Portfolio Strategy
The Beacon Point agreement elevates Hut 8’s aggregate contracted AI data center capacity to 597 MW, representing a cumulative base-term contract value of $16.8 billion. The company projects the lease will yield $9.8 billion in total net operating income throughout the base term, equating to approximately $655 million annually at full stabilization.
Beacon Point represents the second AI facility commercialized through Hut 8′s greenfield development strategy, following the River Bend location. The firm has additionally obtained an interconnection agreement providing 1,000 MW of utility capacity through American Electric Power, with initial energization scheduled for Q1 2027.
As of May 6, 2026, Hut 8’s complete development pipeline totals 8,375 MW. This encompasses 830 MW currently under construction, 550 MW in the development phase, 1,680 MW under exclusivity arrangements, and 5,315 MW undergoing due diligence.
First Quarter 2026 Financial Performance Reveals Growth Amid Losses
Hut 8 simultaneously released its first-quarter earnings on Wednesday. Revenue totaled $71 million, substantially exceeding the $21.8 million reported in Q1 2025, though missing the Wall Street consensus forecast of $79.4 million.
The company reported a net loss of $253.1 million for the quarter, compared to a $134.3 million loss during the corresponding period last year. The expanded loss stemmed predominantly from $295.7 million in unrealized losses on digital assets.
Revenue from ASIC compute, AI cloud, and traditional cloud services surged to $66 million from $16.1 million year-over-year. Power revenue declined to $3.74 million from $4.38 million in Q1 2025.
Adjusted EBITDA for the period registered at -$250.5 million, deteriorating from -$117.7 million in Q1 2025.
The company maintained approximately $1.3 billion in cash and bitcoin holdings as of March 31, 2026, declining from $1.4 billion at year-end 2025.
CEO Asher Genoot indicated the company’s performance demonstrated its emphasis on acquiring large-scale power capacity. “That conviction has produced a contracted revenue base of $16.8B underpinned by triple-net, take-or-pay data center leases with 597 MW of IT capacity across two hyperscale AI campuses,” he said.
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