Hut 8 has signed a second 15-year lease worth $9.8 billion with an existing investment-grade tenant, fully commercializing its one-gigawatt Beacon Point campus in Texas and pushing the site's base-term contract value to $19.6 billion. The shares, which have nearly doubled this year, rose about five percent in premarket trading on Monday.
The deal is the latest evidence that the most valuable asset in the AI arms race is not chips but electricity and the land to plug them into. Former bitcoin miners like Hut 8 have spent years securing power contracts and building sites that can swallow hundreds of megawatts; now they are re-leasing that capacity to hyperscalers at a steep markup. The new agreement covers 352 megawatts of IT capacity and doubles the unnamed tenant's footprint at Beacon Point to 704 megawatts. If renewal options are exercised, the campus could generate as much as $50.2 billion over the life of the contracts.
Across its portfolio Hut 8 now has 949 megawatts of contracted AI capacity backed by 1,330 megawatts of utility supply, with aggregate base-term contract value reaching $26.6 billion. Every megawatt is leased to or backed by investment-grade counterparties, a detail the company emphasizes because in this market credit quality is the only thing that turns a lease into financeable revenue. The company also said it redesigned the first data hall around Nvidia's architecture, squeezing 57 percent more capacity out of the same land and utility envelope, a trick that promptly convinced the tenant to double down.
What the press release does not say is when the cash actually arrives. The first Phase 2 data hall is not expected until the second quarter of 2028, which is a long horizon for a sector that measures hype cycles in quarters. Power delivery risk, construction delays, and the possibility that AI demand plateaus before these halls are filled are all real. The market is pricing the pivot as a done deal; the execution is still years away.
Investors will want to watch whether the 57 percent density gain replicates across the rest of the campus and whether the unnamed tenant continues to expand or simply holds the optionality. The next quarterly filing should show how much of that $26.6 billion in contract value has converted into recognized revenue. Until then, Hut 8 is essentially a very expensive option on the electricity grid.