New York, United States – Hut 8 Corp., a former cryptocurrency miner turned digital infrastructure and compute operator, announced the execution of a 15-year, $9.8 billion lease agreement with an existing high-investment-grade tenant. The contract covers 352 megawatts (MW) of IT capacity at its Beacon Point campus in Texas, enabling full commercialization of the flagship 1-gigawatt (GW) site.
Long-Term Lease Drives Scale and Financial Stability
The agreement doubles the anchor tenant’s contracted capacity at Beacon Point to 704 MW. Hut 8 stated that the campus’s base-term contract value has risen to $19.6 billion over 15 years, with potential expansion up to $50.2 billion if renewal options are fully exercised.
The triple-net (NNN) lease structure provides long-term cash flow visibility anchored by a 3.0% annual rent escalator, insulating the company’s financial model from the historical volatility of crypto mining revenue.
Generative AI Drives Strategic Pivot
Hut 8 continues to reorient its operational footprint toward artificial intelligence infrastructure, capitalizing on data center engineering expertise and secured power interconnection agreements (including with AEP Texas) acquired during its bitcoin mining expansion.
The company highlighted that redesigning its initial Beacon Point data hall around NVIDIA’s DSX reference architecture for gigawatt-scale AI infrastructure increased IT capacity density by 57% within the same footprint. This efficiency gain prompted the anchor tenant to double its capacity reservation.
Portfolio Growth and Market Response
With this transaction, total contracted AI data center capacity across Hut 8’s portfolio reaches 949 MW, supported by 1,330 MW of total utility capacity and an aggregate base-term contract value of $26.6 billion—all with investment-grade counterparties.
Following the announcement, Hut 8 shares rose by approximately 14%. The company confirmed it targets initial delivery of Phase 2 data halls in Q2 2028, meeting sustained global demand for high-density compute infrastructure.
Hut 8’s landmark deal demonstrates that former crypto miners hold a vital advantage in the AI compute race—interconnected power capacity. Re-architecting these assets for advanced NVIDIA platforms converts raw power access into tens of billions of dollars in long-term, high-credit infrastructure value.
