On Monday, Hut 8 announced a new 15-year lease valued at $9.8 billion for its Beacon Point campus in Texas, fully commercializing the 1-gigawatt site.
The deal adds 352 megawatts of IT capacity, doubling the tenant's contracted footprint at Beacon Point to 704 MW.
The unnamed tenant is investment-grade, and the total base-term contract value for Beacon Point now stands at $19.6 billion, with potential to rise to $50.2 billion if all renewal options are exercised.
Following the announcement, Hut 8’s stock rose as much as 16% in premarket trading, marking a more than fourfold increase over the past year.
Across Hut 8’s entire portfolio, contracted AI data center capacity has reached 949 MW, supported by 1,330 MW of utility capacity. The aggregate base-term contract value across all sites totals $26.6 billion.
Hut 8 redesigned its first data hall at Beacon Point based on Nvidia’s architecture, boosting capacity by 57% without expanding the physical footprint. This upgrade likely influenced the tenant's decision to increase capacity.
The company plans to begin delivering the initial Phase 2 data hall by Q2 2028.
Originally a Bitcoin miner, Hut 8 shifted focus toward AI infrastructure, joining other former crypto miners repurposing power and data center assets to support AI workloads.
The news also positively affected other AI infrastructure providers. IREN, another ex-Bitcoin miner, climbed 9% after announcing $2.8 billion in new cloud contracts and raising its AI cloud revenue target to over $4 billion annually. CoreWeave and Nebius shares gained 3.5% and 3.7%, respectively.
Despite share price gains, Hut 8’s GF Score remains low at 12 out of 100, reflecting ongoing financial challenges. The company reports negative earnings, and insiders sold $12.2 million in stock over the past three months without any recorded purchases.
The stock’s price-to-sales ratio is high at 36.74, indicating investor expectations for substantial future growth.
This material is for informational purposes and does not constitute financial advice.
