On July 20, 2026, Hut 8 secured a second 15-year lease at its Beacon Point campus in Nueces County, Texas, adding 352 MW of IT capacity valued at $9.8 billion.
This deal mirrors the first phase signed in May 2026, bringing the total contracted IT capacity at Beacon Point to 704 MW and a combined base-term contract value of $19.6 billion.
The Beacon Point site has 1,000 MW of utility capacity allocated to support the full 704 MW IT load.
Initial energization of the campus is planned for the first quarter of 2027, with delivery of the second phase data hall targeted for the second quarter of 2028.
The 15-year lease includes a 3% annual rent escalator and renewal options that could increase the total contract value of Beacon Point to approximately $50.2 billion over the extended term.
Hut 8 closed $4.25 billion in project financing for the first phase in June 2026, enabling the start of construction.
The company’s strategy draws from its earlier success at the River Bend campus in Louisiana, where it secured a 245 MW lease worth $7 billion.
In total, Hut 8 has contracted 949 MW of AI data center capacity across its portfolio, with a base-term value of $26.6 billion and projected annual net operating income exceeding $1.75 billion.
Founded as a Bitcoin miner, Hut 8 weathered the 2022 crypto winter and merged with US Bitcoin Corp in late 2023. Since then, it has shifted focus to energy infrastructure and AI computing services.
The long-term leases with fixed 3% escalators provide stable and predictable revenue, contrasting with the volatility of Bitcoin mining earnings tied to network difficulty and token prices.
However, the company’s large debt burden from financing and potential construction delays could affect its balance sheet and project timelines.
With Beacon Point’s energization expected in early 2027, Hut 8’s valuation may increasingly reflect its transformation into a power infrastructure firm rather than a crypto asset miner.
This material is for informational purposes and not financial advice.
