North American Bitcoin miner Hut 8 Corp. dropped a bombshell Wednesday: a 15-year, $9.8 billion lease for Phase 1 of its Beacon Point AI data center in Nueces County, Texas. The news sent HUT shares soaring 33% to an all-time high of $109.88. Over the past month, the stock has more than doubled.
Shares Double in a Month, HUT Hits Record
The near-$10 billion deal lit a fire under Wall Street. HUT peaked at $109.88 in Wednesday trading before closing near $107. The lease covers 352 megawatts of IT capacity. The tenant, described as a 'high-investment-grade company,' plans to deploy dedicated infrastructure for large-scale AI training and inference workloads. Hut 8 declined to name the client but emphasized the contract's long-term stability.
From Bitcoin Mining to AI Renting
Beacon Point was originally built for Trump-backed subsidiary American Bitcoin to mine the flagship cryptocurrency. But surging AI demand and Nvidia's new DSX architecture — which demands higher rack-level power density — forced Hut 8 to pivot mid-development. Without expanding its land or water footprint, the company expanded the initial 224 MW data hall to 352 MW, a 57% capacity boost. The miner is now a high-margin AI landlord instead of just a Bitcoin producer.
Staggering Long-Term Revenue Potential
The lease reshapes Hut 8's financials. Total contracted AI data center capacity now stands at 597 MW, with a base contract value of $16.8 billion and an average annual net operating income (NOI) of $1.1 billion. The agreement includes 3% annual rent escalators and three five-year renewal options, pushing the potential total to $25.1 billion. Hut 8 has also secured a 1,000 MW interconnection agreement with AEP Texas, with initial power expected in Q1 2027. The company holds a further 7,545 MW of energy reserves at various stages of development. In the AI infrastructure arms race, miners are winning long-term revenue tickets by leveraging their power and cooling assets.