Key Highlights
- Hut 8 secured an additional 15-year lease valued at $9.8 billion for its Texas-based Beacon Point facility
- The agreement brings the 1-gigawatt campus to full commercial utilization, with the undisclosed tenant expanding its presence to 704 MW total
- Shares of HUT climbed as much as 16% during premarket hours following the announcement
- Hut 8’s complete AI data center portfolio now features 949 MW of contracted capacity, representing $26.6 billion in aggregate base-term value
- The company optimized its initial data hall using Nvidia’s technology framework, boosting capacity by 57% without expanding physical space
On Monday, Hut 8 revealed it has finalized a second long-term lease agreement worth $9.8 billion at its Beacon Point facility in Texas, bringing the entire 1-gigawatt campus to complete commercialization. The company’s stock price soared by up to 16% in premarket sessions, marking a more than fourfold increase over the trailing twelve months.
This latest arrangement encompasses 352 megawatts of IT capacity, effectively expanding the investment-grade tenant’s total presence at the location to 704 MW—precisely double their previous commitment.
The addition of this second lease brings Beacon Point’s cumulative base-term contract valuation to $19.6 billion spanning 15 years. Should the tenant exercise every renewal provision available, that figure could balloon to approximately $50.2 billion.
Looking at Hut 8’s entire infrastructure portfolio, the company now boasts 949 MW of contracted AI data center capacity, supported by 1,330 MW of utility-grade power capacity. The combined base-term contract value throughout the portfolio has climbed to $26.6 billion.
Every megawatt of contracted capacity is leased to or supported by investment-grade entities.
Nvidia-Based Design Enables Capacity Expansion
According to Hut 8, the company restructured the initial data hall at Beacon Point utilizing Nvidia’s technological framework. This strategic redesign delivered a 57% capacity enhancement within identical land and power parameters—a factor that seemingly motivated the current tenant to expand their footprint substantially.
The organization anticipates commencing delivery of the initial Phase 2 data hall during the second quarter of 2028.
Originally established as a Bitcoin mining operation, Hut 8 has strategically transitioned toward AI infrastructure services. The company represents part of an expanding trend of former cryptocurrency miners repurposing their energy resources and data center expertise to support artificial intelligence workloads.
Positive Momentum Spreads Across Neocloud Industry
The disclosure generated momentum for similar companies in the neocloud segment. IREN, another cryptocurrency miner that pivoted to AI infrastructure, climbed 9% in premarket trading after revealing $2.8 billion in fresh multiyear cloud agreements. IREN simultaneously elevated its annualized run-rate revenue projection for AI cloud operations to over $4 billion, up from the previous $3.7 billion target.
CoreWeave shares increased 3.5% in premarket activity, while Nebius advanced 3.7%.
Notwithstanding the stock’s impressive performance trajectory, Hut 8’s GF Score registers at merely 12 out of 100, highlighting persistent concerns regarding financial stability and profitability metrics. The organization currently operates with negative earnings, and company insiders have divested $12.2 million in shares during the previous three months without any documented insider purchases.
The equity trades at a price-to-sales multiple of 36.74, significantly elevated compared to historical benchmarks, indicating that market participants are incorporating substantial future expansion into current valuations.
Hut 8 maintains a market capitalization of roughly $10.29 billion. Shares have approximately doubled in value during 2026 year-to-date.
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