Hut 8 Joint Venture Lands Long-Term Capacity Deals For Four Ontario Plants: Retail’s Exuberant

Bitcoin (BTC) miner Hut 8 Corp (HUT) announced on Wednesday that its joint venture with the Macquarie Equipment under the Far North Power Corp., has secured five-year capacity contracts for all four of its natural gas-fired power plants with the Ontario Independent Electricity System Operator.

Following the news, Hut 8 stock traded 13.6% higher in afternoon trading on Wednesday. Bitcoin’s price had also increased by 3.6% in the last 24 hours, trading at around $109,553.

Far North Power secured these contracts through a successful bid in Ontario’s Medium-Term 2 (MT2) capacity auction.Beginning on May 1, 2026, the contracts will guarantee steady income for four power stations situated in Ontario – Iroquois Falls, Kingston, Kapuskasing, and North Bay.

Together, these plants have a total nameplate capacity of 310 megawatts (MW). The agreements feature an initial year’s weighted average payment of CAD $530 ($389.25 billion) per megawatt for each business day, with partial adjustments linked to inflation, allowing for potential growth over time.

The capacity contracts are backed by the Ontario Independent Electricity System Operator (IESO), which holds an AA3 credit rating with a positive outlook from Moody’s. 

The company said the deal shifts the company’s revenue model from short-term seasonal arrangements to longer-term fixed agreements, offering greater earnings predictability. 

It also positions Hut 8 to capitalize on Ontario’s forecasted electricity demand surge, which the IESO estimates could grow by 75% by 2050. 

In addition, Ontario’s main power management organization has projected a 5.8 GW capacity shortfall by 2030, amplifying the importance of existing dispatchable resources. 

Hut 8 sees an energy portfolio totaling 1,020 megawatts across 15 locations in both the U.S. and Canada, including five sites dedicated to Bitcoin mining, hosting, and Managed Services in Alberta, New York, and Texas.

On Stocktwits, retail sentiment toward Hut 8 improved to ‘extremely bullish’(80/100) from ‘bullish’ the previous day amid ‘high’ levels of message volume.

Hut 8 stock has gained over 2% year-to-date and over 34% in the last 12 months.

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1CAD = 0.73USD