Hut 8 launches Beacon Point AI lease worth $9.8b

Hut 8 has signed a 15-year, $9.8 billion AI data center lease at its Beacon Point campus in Nueces County, Texas, sending its stock nearly 30% higher on Wednesday.

Hut 8 has signed a 15-year, $9.8 billion AI data center lease at its Beacon Point campus in Nueces County, Texas, with a company it described only as a “high-investment-grade” tenant.

The lease covers 352 megawatts of IT capacity and is structured as a triple-net agreement with a 3% annual rent escalator, projected to generate approximately $655 million in annual revenue at full operation.

The deal is the second AI campus commercialised under Hut 8’s greenfield development model, following its River Bend site in Louisiana. CEO Asher Genoot said in a statement: “Beacon Point underscores why we start with power and maintain flexibility across end markets. Operating across multiple applications lets us underwrite assets that single-use-case developers cannot.”

Stock and pipeline

Hut 8 stock jumped nearly 30% on Wednesday. Renewal options lift the total contract value to $25.1 billion. The deal brings the company’s total contracted AI data center capacity to 597 megawatts, with a combined base-term value of $16.8 billion.

The facility will be built to NVIDIA’s DSX reference architecture with partners American Electric Power, Vertiv, and Jacobs. Initial energization is expected in Q1 2027, with the first data hall delivered by Q3 2027. Hut 8’s total development pipeline now stands at 8,375 megawatts across sites at various stages of construction, development, and exclusivity.

The announcement came alongside Q1 2026 earnings showing revenue of $71 million, up from $21.8 million in Q1 2025 but below Wall Street’s $79.4 million consensus.

The company posted a net loss of $253.1 million for the quarter, driven primarily by $295.7 million in unrealized losses on digital assets. Hut 8 also reported access to approximately $1.3 billion in combined cash and bitcoin reserves as of March 31.

Hut 8 is among several former bitcoin miners pivoting to AI infrastructure as mining margins compress. As crypto.news documented, Core Scientific, TeraWulf, and IREN have made similar conversions, with publicly listed miners facing losses of approximately $19,000 per bitcoin produced under current market conditions.

For Hut 8, the Beacon Point lease establishes a long-term revenue base designed to insulate the company from continued bitcoin mining volatility.