Hut 8's Beacon Point Campus Fully Booked: Second $9.8 Billion Lease Doubles Tenant's Footprint

• Hut 8 secured a second $9.8 billion lease at its Beacon Point campus on Monday, fully commercializing the 1-gigawatt Texas site.
• The tenant doubled its footprint at Beacon Point, increasing contracted capacity to 704 MW of IT load.
• Combined lease commitments now exceed $19 billion, with potential contract value rising above $50 billion if renewal options are exercised.

Hut 8 (HUT) shares jumped over 16% in Monday pre-market trade after the Bitcoin (BTC) miner-turned-AI-infrastructure company announced it has secured a second $9.8 billion lease that fully commercializes its 1-gigawatt Beacon Point data center site in Texas.

Shares of HUT 8 went up over $106 during pre-market trading from its Friday close of $91.45 after the firm's current tenant at Beacon Point increased its contracted capacity at the facility, increasing it to 704 megawatts (MW) of IT capacity out of the campus's maximum 1,000 MW of utility capacity.

HUT stock was one of the top trending tickers on Stocktwits. Retail sentiment around HUT improved to ‘bullish’ from the ‘bearish’ zone over the past day. Chatter also rose to ‘high’ from ‘normal’ levels. 

Deal Terms And Financial Projections

Combined, the two leases put the campus’s base-term contract value at over $19 billion, or $50.2 billion if all renewal options for each lease are exercised across the entire 1,000 MW site, the company said. Each lease contains a 3% yearly base rent escalation and three five-year renewal options, the firm added.

"The real test of our power-first approach is what our partners are willing to commit against it," Hut 8 CEO Asher Genoot said. "Our tenant at Beacon Point chose to double its footprint at the site, the strongest validation an asset can receive. We took this greenfield site from first lease to full commercialization in just months."

The second phase was a 352 MW AI data hall based on Nvidia’s (NVDA) DSX standard architecture, supported by 500 MW of utility power, and is projected to be operational in the second quarter of 2028. Once stabilized, the 1,000 MW build-out of the campus is estimated to generate an average annual net operating income of $1.31 billion, according to Hut 8.

From Bitcoin Mining Site To AI Campus

Beacon Point was originally sponsored on a speed-to-power basis to service Hut 8’s linked Bitcoin miner American Bitcoin Corp (ABTC), but was entirely transformed to serve AI tenants on long-term leases. 

Hut 8 stated it had acquired all 1,000 MW of utility capacity at Beacon Point under an interconnection deal with American Electric Power (AEP) Texas, and that the new lease doesn't require any further capacity to support it. Site initial energization continues on track for the first quarter (Q1) of 2027.

The firm also said its $250 million stock repurchase program, announced in December 2024, is ongoing, with the company authorized to repurchase up to 6.16 million shares, or 5% of its currently outstanding common stock, over the following 12 months.

Read also: Chamath Palihapitiya Says Bitcoin Faces Two ‘Structural’ Headwinds – But Two Of Crypto's Biggest CEOs Call The Threat Overblown

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