Key Highlights
- Shares of Hut 8 climbed 37% on Wednesday following the unveiling of a 15-year, $9.8 billion data center lease agreement at its Beacon Point AI facility in Texas.
- The agreement encompasses 352 MW of IT capacity through a triple-net lease structure with a tenant holding high investment-grade credit, featuring a 3% yearly rent increase.
- This transaction elevates Hut 8’s aggregate contracted AI data center capacity to 597 MW, representing a combined base-term contract value of $16.8 billion.
- First-quarter 2026 revenue reached $71 million, climbing from $21.8 million in the prior-year period, though falling short of the $79.4 million analyst projection.
- The firm recorded a Q1 net loss of $253.1 million, predominantly attributed to $295.7 million in unrealized digital asset losses.
Shares of Hut 8 (HUT) experienced a dramatic 37% rally on Wednesday after the company unveiled a monumental 15-year lease agreement valued at $9.8 billion for its Beacon Point AI data center facility located in Nueces County, Texas. The equity 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 tenant carrying high-investment-grade credit ratings. The terms incorporate a 3% annual base rent escalation clause along with three optional 5-year renewal periods, potentially driving total contract value to $25.1 billion should all renewal options be executed.
The tenant plans to utilize the facility for operating dedicated AI training and inference computing workloads at hyperscale levels. The site is being constructed according to NVIDIA’s DSX reference architecture designed for gigawatt-scale AI infrastructure deployment.
Hut 8 has partnered with Jacobs serving as engineering lead contractor and Vertiv Holdings providing critical infrastructure systems. The initial data delivery phase is projected for the third quarter of 2027.
Impact on Hut 8’s Infrastructure Portfolio
The Beacon Point lease agreement expands Hut 8’s total contracted AI data center capacity to 597 MW, representing a cumulative base-term contract value of $16.8 billion. The company projects the lease will produce $9.8 billion in total net operating income throughout the base term period, translating to approximately $655 million annually once operations reach full stabilization.
Beacon Point represents the second AI facility commercialized through Hut 8′s greenfield development strategy, following its River Bend location. The company has additionally secured an interconnection agreement providing 1,000 MW of utility capacity with American Electric Power, with initial energization scheduled for Q1 2027.
As of May 6, 2026, Hut 8’s comprehensive development pipeline totals 8,375 MW. This encompasses 830 MW currently under construction, 550 MW in active development, 1,680 MW under exclusivity arrangements, and 5,315 MW undergoing due diligence evaluation.
Q1 2026 Financial Results Reveal Revenue Expansion Amid Substantial Losses
Hut 8 simultaneously released first-quarter earnings on Wednesday. Revenue totaled $71 million, significantly surpassing $21.8 million from Q1 2025, but trailing the Wall Street consensus estimate of $79.4 million.
The company reported a net loss of $253.1 million for the quarter, compared with a loss of $134.3 million during the corresponding period last year. The expanded loss stemmed primarily from $295.7 million in unrealized losses on digital asset holdings.
ASIC compute, AI cloud, and traditional cloud revenue surged to $66 million from $16.1 million year-over-year. Power revenue decreased to $3.74 million from $4.38 million in Q1 2025.
Adjusted EBITDA for the quarter registered at -$250.5 million, deteriorating from -$117.7 million in Q1 2025.
The company maintained approximately $1.3 billion in cash and bitcoin holdings as of March 31, 2026, declining from $1.4 billion at year-end 2025.
CEO Asher Genoot indicated the company’s performance demonstrated its strategic emphasis on securing 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 stated.
