Hut 8 inks $9.8B, 15-year AI data center lease at Beacon Point — stock surges
Hut 8 announced a blockbuster 15-year, $9.8 billion lease for AI data center capacity at its Beacon Point campus in Nueces County, Texas, with a tenant the company described only as “high-investment-grade.” The agreement covers 352 MW of IT capacity and is structured as a triple-net lease with a 3% annual rent escalator. At full operation, Hut 8 says the deal could generate roughly $655 million in annual revenue.
Key details
- Lease term: 15 years (renewal options push total potential contract value to $25.1 billion).
- Capacity: 352 MW at Beacon Point; lifts Hut 8’s total contracted AI capacity to 597 MW.
- Financials: $9.8 billion base-term value for the Beacon Point deal; combined base-term value across contracts now $16.8 billion.
- Lease structure: triple-net (tenant responsible for taxes, insurance and maintenance) with a 3% yearly rent escalator.
- Tech & partners: Campus will be built to NVIDIA’s DSX reference architecture with American Electric Power, Vertiv, and Jacobs. Initial energization is slated for Q1 2027 and the first data hall for Q3 2027.
- Development pipeline: Hut 8 now lists 8,375 MW across projects at various stages of construction, development and exclusivity.
CEO Asher Genoot framed the deal as validation of Hut 8’s strategy to “start with power and maintain flexibility across end markets,” saying that operating across multiple applications allows the company to underwrite assets that single-use developers cannot.
Market reaction and company results
Hut 8’s shares jumped nearly 30% on the news. The announcement coincided with Q1 2026 results that showed revenue of $71 million (up from $21.8 million in Q1 2025 but short of Wall Street’s $79.4 million estimate). The company posted a net loss of $253.1 million for the quarter, largely driven by $295.7 million in unrealized losses on digital assets. As of March 31, Hut 8 reported access to roughly $1.3 billion in combined cash and bitcoin reserves.
Why it matters for miners pivoting to AI
The Beacon Point lease highlights an accelerating trend among former bitcoin miners shifting into AI infrastructure as mining margins compress. Public miners including Core Scientific, TeraWulf and IREN have pursued similar conversions. Industry reporting indicates that, under current conditions, some publicly listed miners are losing roughly $19,000 for every bitcoin produced — making long-term, contract-based revenue from AI campuses an attractive hedge against crypto volatility.
Bottom line
For Hut 8, Beacon Point establishes a substantial, long-term revenue stream anchored by a high-investment-grade tenant, helping to diversify the company beyond bitcoin mining and stabilise cash flows as it scales a large AI-focused development pipeline.
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