HUT 8’s AI Pivot Is Paying Off Faster Than Expected – HUT Stock Nears $100

• HUT’s stock surged as much as 36% in pre-market trading, putting the stock on track for a record high above $100.
• Hut 8 reported a narrower-than-expected loss of $0.12 per share, while revenue of $71 million fell short of forecasts.
• The company’s new data center deal is expected to generate about $655 million in annual revenue once fully operational.

Shares of Hut 8 (HUT) were on track to hit a new record high after the stock jumped following the company’s announcement of a $10 billion data center lease in Texas alongside its first quarter (Q1) earnings beat. 

HUT’s stock rose as much as 36% in pre-market trade, implying a share price of over $108, which would mark a new record high and the stock’s first time crossing the $100 threshold. If gains hold till market closing, this would also mark the stock’s largest single-day gain in history. 

Retail sentiment on Stocktwits around the company improved to ‘neutral’ from ‘bearish’ over the past day. Chatter rose to ‘high’ from ‘normal’ levels. 

HUT’s New AI Data Center Deal Drives Rally

The rally in HUT’s stock came after the company beat earnings expectations but missed on revenue. It reported an adjusted loss of $0.12 per share, narrower than the consensus estimate of $0.36 per share, according to Koyfin data. Revenue came in at $71 million, missing Wall Street’s expectations of $79 million.

Hut 8 also announced a 15-year, $9.8 billion lease for 352 megawatts (MW) of IT capacity at its Beacon Point AI data center campus in Nueces County, Texas. The rent will increase by 3% each year, bringing in an estimated $655 million once everything is fully operational and $9.8 billion in profit over the course of the deal. 

The company said the first part of the data center should be ready by late 2027, provided the power supply for the site kicks in at the beginning of the year. 

Beacon Point represents the second AI data center campus commercialized under Hut 8’s power-first, greenfield development model, following River Bend. The facility will be designed to accommodate advanced AI system designs from Nvidia (NVDA), and built with help from Jacobs (J) and Vertiv Holdings (VRT). 

Jacobs’ stock traded flat in early morning trade, but VRT’s stock gained over 4%. Retail sentiment around VRT on Stocktwits rose to ‘bullish’ from ‘neutral’ over the past day, accompanied by chatter at ‘normal’ levels. 

From Bitcoin Mining To AI Infrastructure

The deal brings Hut 8's total leased AI data center capacity to 597 MW, valued at about $16.8 million combined. The company said that the total value could rise to $25.1 billion if the customers extend their leases. 

Hut 8 has been moving away from being a Bitcoin (BTC) miner and pivoting towards becoming a power and compute infrastructure company focused on data centers and AI workloads. It merged with U.S. Bitcoin back in 2023 and last year, sold a big chunk of its Bitcoin mining operations to Eric Trump-backed American Bitcoin (ABTC). ABTC is expected to report its own earnings after the bell today. Wall Street expects zero earnings per share on revenue of $75 million. 

Hut 8 still holds around 13,696 BTC on its balance sheet, valued at around $1.13 billion as per Bitcoin’s current price of over $82,200. 

Read also: Arthur Hayes Slams CLARITY Push – Crypto 'Doesn't Need' Regulation, Only Benefits Centralized Companies

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