Key Takeaways
- Hut 8 shares surged 37% following the announcement of a $9.8 billion, 15-year data center lease agreement at its Texas-based Beacon Point facility.
- The triple-net lease encompasses 352 MW of IT capacity with an investment-grade tenant and features a 3% yearly rent increase provision.
- This transaction elevates Hut 8’s total AI data center contracted capacity to 597 MW, representing $16.8 billion in base-term contract value.
- First-quarter 2026 revenue reached $71 million, climbing from $21.8 million year-over-year, though falling short of the $79.4 million analyst projection.
- The firm reported a Q1 net loss of $253.1 million, primarily attributed to $295.7 million in unrealized digital asset losses.
Shares of Hut 8 (HUT) skyrocketed 37% on Wednesday following the company’s announcement of a massive 15-year lease agreement valued at $9.8 billion for its Beacon Point AI data center facility located in Nueces County, Texas. The stock had already climbed 29% during premarket hours before regular trading commenced.
The agreement encompasses 352 megawatts of IT capacity structured as a triple-net lease with an undisclosed high-investment-grade tenant. The contract incorporates a 3% annual base rent escalation clause and provides three additional 5-year extension periods, potentially elevating the total contract value to $25.1 billion should all renewal options be activated.
The lessee will utilize the location for dedicated AI training and inference operations at hyperscale. The infrastructure is being constructed according to NVIDIA’s DSX reference architecture designed for gigawatt-scale AI systems.
Hut 8 has partnered with Jacobs as the primary engineering contractor and Vertiv Holdings for critical infrastructure components. Initial data delivery is scheduled for the third quarter of 2027.
Impact on Hut 8’s Overall Operations
The Beacon Point agreement elevates Hut 8’s total contracted AI data center capacity to 597 MW, representing a combined base-term contract value of $16.8 billion. The company projects the lease will produce $9.8 billion in cumulative net operating income throughout the base period, translating to approximately $655 million annually once operations reach full capacity.
Beacon Point represents the second AI facility commercialized through Hut 8′s greenfield development approach, following the River Bend location. The company has additionally finalized an interconnection arrangement for 1,000 MW of utility capacity with American Electric Power, with initial power delivery anticipated in Q1 2027.
As of May 6, 2026, Hut 8’s comprehensive development pipeline encompasses 8,375 MW. This figure includes 830 MW currently under construction, 550 MW in active development, 1,680 MW under exclusive agreements, and 5,315 MW undergoing due diligence evaluation.
First Quarter 2026 Financial Performance Shows Mixed Results
Hut 8 simultaneously released its first-quarter earnings on Wednesday. Revenue totaled $71 million, significantly exceeding the $21.8 million recorded in Q1 2025, but trailing the Wall Street consensus estimate of $79.4 million.
The company recorded a net loss of $253.1 million for the quarter, compared to a loss of $134.3 million during the corresponding period last year. The expanded loss was predominantly caused by $295.7 million in unrealized losses on digital assets.
ASIC compute, AI cloud, and traditional cloud revenue surged to $66 million from $16.1 million a year earlier. Power revenue decreased to $3.74 million from $4.38 million in Q1 2025.
Adjusted EBITDA for the quarter registered at -$250.5 million, compared to -$117.7 million in Q1 2025.
The company maintained approximately $1.3 billion in cash and bitcoin as of March 31, 2026, declining from $1.4 billion at year-end 2025.
CEO Asher Genoot stated the company’s performance demonstrated its commitment to acquiring large-scale power capacity. “That conviction has produced a contracted revenue base of $16.8B underpinned by triple-net, take-or-pay data center leases with 597 MW of IT capacity across two hyperscale AI campuses,” he said.
