TLDR
- Shares of Hut 8 soared 37% Wednesday following the announcement of a $9.8 billion, 15-year lease agreement at its Beacon Point AI data center facility in Texas.
- The triple-net lease agreement encompasses 352 MW of IT capacity with a tenant holding high investment-grade credit and features a 3% yearly rent increase.
- This agreement elevates Hut 8’s total AI data center contracted capacity to 597 MW, with combined base-term contract value reaching $16.8 billion.
- First-quarter 2026 revenue totaled $71 million, rising from $21.8 million year-over-year, though falling short of the $79.4 million analyst consensus.
- The firm recorded a Q1 net loss of $253.1 million, primarily attributed to $295.7 million in unrealized digital asset losses.
Shares of Hut 8 (HUT) skyrocketed 37% Wednesday after the company announced a landmark 15-year lease agreement valued at $9.8 billion for its Beacon Point AI data center facility located in Nueces County, Texas. The stock had previously climbed 29% during premarket hours before regular trading commenced.
The agreement encompasses 352 megawatts of IT capacity structured as a triple-net lease with an undisclosed tenant possessing high investment-grade credentials. The contract features a 3% annual base rent escalation clause and offers three optional 5-year extension periods, potentially increasing the total agreement value to $25.1 billion should all extensions be activated.
The tenant plans to utilize the location for dedicated AI training and inference operations at hyperscale levels. The infrastructure is being designed according to NVIDIA’s DSX reference specifications for gigawatt-scale AI deployments.
Hut 8 has partnered with Jacobs as the primary engineering contractor and Vertiv Holdings for critical infrastructure components. The facility’s initial data delivery is projected for the third quarter of 2027.
How This Agreement Transforms Hut 8’s Portfolio
The Beacon Point agreement expands Hut 8’s total contracted AI data center capacity to 597 MW, with a combined base-term contract value totaling $16.8 billion. The company anticipates the lease will produce $9.8 billion in cumulative net operating income throughout the base term, translating to approximately $655 million annually once operations reach full capacity.
Beacon Point represents the second AI facility commercialized through Hut 8′s greenfield development strategy, following the River Bend location. The company has additionally secured an interconnection arrangement for 1,000 MW of utility capacity through American Electric Power, with initial energization anticipated in Q1 2027.
As of May 6, 2026, Hut 8’s complete development pipeline encompasses 8,375 MW. This includes 830 MW currently under construction, 550 MW in active development, 1,680 MW secured under exclusivity agreements, and 5,315 MW undergoing due diligence.
First Quarter 2026 Financial Results Reveal Revenue Gains Alongside Significant Losses
Hut 8 simultaneously released its first-quarter earnings Wednesday. Revenue totaled $71 million, substantially exceeding the $21.8 million reported in Q1 2025, though trailing the Wall Street consensus estimate of $79.4 million.
The company reported a net loss of $253.1 million for the quarter, compared to a $134.3 million loss during the corresponding period last year. The expanded loss stemmed primarily from $295.7 million in unrealized losses on digital assets.
Revenue from ASIC compute, AI cloud, and traditional cloud services surged to $66 million from $16.1 million year-over-year. Power revenue decreased to $3.74 million from $4.38 million in Q1 2025.
Adjusted EBITDA for the quarter registered at -$250.5 million, deteriorating from -$117.7 million in Q1 2025.
The company maintained approximately $1.3 billion in cash and bitcoin as of March 31, 2026, declining from $1.4 billion at year-end 2025.
CEO Asher Genoot stated the company’s performance demonstrated its commitment to acquiring large-scale power capacity. “That conviction has produced a contracted revenue base of $16.8B underpinned by triple-net, take-or-pay data center leases with 597 MW of IT capacity across two hyperscale AI campuses,” he said.
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