Hut 8 signed a second 15-year lease worth $9.8 billion for its AI data center at the Beacon Point campus in Nueces County, Texas. The deal adds 352 megawatts of IT capacity, doubling the site's contracted capacity to 704 MW and fully commercializing the campus against its 1,000 MW utility capacity. Shares climbed over 10% on the news, closing near $101 after peaking above $106.
A $9.8 Billion Bet on AI Infrastructure
The lease is the second major contract for Beacon Point, following an earlier agreement that brought the campus to 352 MW. With this addition, Hut 8 has locked in a total contract value that could reach $50.2 billion if renewal options are exercised, according to Benchmark analyst Mark Palmer. He estimates the Beacon Point lease alone could contribute roughly $655 million per year in net operating income once stabilized.
Palmer, who reiterated a 'buy' rating and raised his price target from $165 to $195, argued the deal validates Hut 8's 'power-first' approach to building AI infrastructure. The new target implies an 80% upside from the current share price of nearly $110.
The Bitcoin Miner Pivot
Hut 8 is among a growing list of publicly traded Bitcoin miners pivoting toward AI and high-performance computing. Falling Bitcoin prices and rising mining difficulty have pushed firms to seek new revenue streams. Rivals including Terawulf, IREN, and Cipher Mining have signed similar multi-year HPC contracts with Google and Microsoft. Bitfarms recently announced it would wind down mining to focus on high-performance computing.
Hut 8 previously struck a Google-backed deal with Anthropic and Fluidstack to build up to 2.3 gigawatts of AI data center capacity in the U.S. The company maintains its mining business through a majority stake in American Bitcoin, backed by Eric Trump and Donald Trump Jr.
Hut 8 is scheduled to report second-quarter earnings on August 4. Investors will be watching for updates on the Beacon Point buildout and any further AI contracts. The company's pivot to AI infrastructure is now fully underway, with a second massive lease in hand and a growing pipeline of potential deals.
