Hut 8 shares climbed 35% after securing a $9.8 billion, 15-year lease for its Texas data center. The deal brings total contracted AI capacity to 597 MW.
Hut 8 Corp. (Nasdaq: HUT) shares jumped over 35% on heavy volume following the announcement of a 15-year, $9.8 billion lease agreement for its Beacon Point data center campus in Nueces County, Texas. The deal secures 352 megawatts of IT capacity for a high-investment-grade tenant, marking a significant expansion of the company's energy infrastructure footprint. This move validates the firm's power-first, greenfield development strategy, which prioritizes securing utility capacity before commercializing sites for hyperscale AI training and inference workloads.
The Beacon Point project represents the second major commercialization under the company's current model, following the River Bend site. By securing an interconnection agreement for 1,000 MW of utility capacity, the company is positioning itself to capitalize on the sustained demand for energy-intensive digital infrastructure. Initial energization for the site is slated for Q1 2027, providing a multi-year runway for development and capital deployment. With this latest agreement, total contracted AI data center capacity reaches 597 MW, pushing the aggregate base-term contract value to approximately $16.8 billion.
For those analyzing the HUT stock page, the primary shift is the transition from speculative mining-linked valuation to long-term infrastructure utility. The aggregate average annual net operating income (NOI) now sits at approximately $1.1 billion. This shift changes the fundamental profile of the company, as the revenue stream is now tied to long-term, high-investment-grade contracts rather than the volatility of digital asset markets. The market's reaction, characterized by a move on over 13 million shares, suggests a repricing based on this improved cash flow visibility.
The current price of $108.63 reflects a sharp break from recent trading ranges, driven by the sheer scale of the $9.8 billion contract. While the headline number is substantial, the practical focus for the next several quarters will be on the execution of the 1,000 MW interconnection and the transition from site development to operational status. Investors should monitor the progress of the initial energization in 2027, as any delays in utility interconnection or construction could impact the projected NOI timeline.
AlphaScala currently assigns HUT an Alpha Score of 62/100, reflecting a moderate outlook as the company integrates these large-scale infrastructure projects into its balance sheet. The stock's ability to hold these gains will depend on the market's confidence in the company's ability to manage the capital expenditure required to bring 352 MW of capacity online. The next concrete marker for the stock will be the operational milestones associated with the Beacon Point site, as these will serve as the primary proof points for the company's ability to scale its power-first model without diluting its long-term margin targets.
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