Key Highlights
- Hut 8 executed an additional 15-year lease agreement valued at $9.8 billion for its Beacon Point facility in Texas
- The agreement completes commercialization of the entire 1-gigawatt site, with the undisclosed client expanding their committed capacity to 704 MW
- Shares of HUT climbed up to 16% during premarket hours following the announcement
- The company’s complete AI data center portfolio now features 949 MW of contracted capacity, representing $26.6 billion in cumulative base-term contract value
- Redesigning the initial data hall using Nvidia’s framework enabled Hut 8 to boost capacity by 57% without expanding physical infrastructure
On Monday, Hut 8 revealed it has finalized an additional 15-year lease agreement valued at $9.8 billion for its Beacon Point facility in Texas, achieving complete commercialization of the 1-gigawatt location. Following this revelation, HUT shares climbed as high as 16% during premarket activity, marking a more than fourfold increase over the trailing twelve months.
This agreement encompasses 352 megawatts of IT capacity, effectively doubling the total contracted space for the investment-grade client, whose identity remains undisclosed, to 704 MW at the facility.
Following this second agreement, the Beacon Point campus now represents a base-term contract valuation of $19.6 billion spanning 15 years. Should all available renewal provisions be activated, this figure could escalate to approximately $50.2 billion.
Looking at Hut 8’s complete portfolio, the company’s total contracted AI data center capacity has now reached 949 MW, supported by 1,330 MW of available utility capacity. The cumulative base-term contract value throughout the portfolio has climbed to $26.6 billion.
Every megawatt of contracted capacity is either leased to or supported by counterparties with investment-grade credit ratings.
Nvidia Architecture Powers Efficiency Improvements
The company disclosed that it restructured the initial data hall at Beacon Point utilizing Nvidia’s architectural framework. This strategic redesign delivered a 57% capacity increase while maintaining identical land and utility requirements ā a factor that seemingly played a crucial role in the existing tenant’s choice to expand their commitment.
Delivery of the first Phase 2 data hall is anticipated to commence during the second quarter of 2028.
Originally established as a Bitcoin mining operation, Hut 8 has successfully transitioned toward AI infrastructure development. The company represents part of an emerging trend of former cryptocurrency miners repurposing their power infrastructure and data center expertise to address AI sector demand.
Broader Neocloud Sector Momentum
Today’s news generated positive momentum throughout the neocloud sector. IREN, another company that evolved from Bitcoin mining to AI infrastructure provision, climbed 9% in premarket trading after disclosing $2.8 billion in fresh multiyear cloud agreements. IREN simultaneously increased its annualized run-rate revenue projection for AI cloud offerings to exceed $4 billion, up from the previous $3.7 billion target.
CoreWeave experienced a 3.5% premarket gain, while Nebius advanced 3.7%.
While the stock has delivered impressive returns, Hut 8’s GF Score registers at merely 12 out of 100, highlighting persistent concerns regarding financial stability and profitability metrics. The company presently operates with negative earnings, and company insiders have divested $12.2 million in shares during the previous three months without any documented purchases.
The stock’s price-to-sales ratio currently registers at 36.74, significantly exceeding historical norms, indicating that market participants are factoring in substantial future expansion.
Hut 8’s market capitalization currently stands at roughly $10.29 billion. Year-to-date in 2026, the company’s shares have approximately doubled in value.
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