Former bitcoin miner Hut 8 announced Monday, July 20, that it has signed a second 15-year lease at its Beacon Point campus in Nueces County, Texas — a 352 megawatt deal with a base-term contract value of $9.8 billion that fully commercializes the 1,000 MW site. Shares rose about 12% premarket and as much as 17% during Monday trading.
One tenant, doubled down
The customer — unnamed, but described as a "high-investment-grade company" — is the same tenant that signed Phase 1 earlier this year, also at $9.8 billion. It has now doubled its footprint to 704 MW of IT capacity across the campus. With both phases signed, Beacon Point carries $19.6 billion in base-term contract value, rising to as much as $50.2 billion if three 5-year renewal options are exercised.
The economics
The leases are triple-net with a 3.0% annual escalator. Hut 8 expects Phase 2 to generate roughly $655 million in annual net operating income at stabilization, with the full campus averaging about $1.31 billion per year. Initial energization is slated for Q1 2027, with the first Phase 2 data hall delivering in Q2 2028. The Phase 2 AI factory is designed around Nvidia's DSX reference architecture.
From mining rigs to AI landlord
Company-wide, Hut 8 now counts 949 MW of contracted AI data center capacity representing $26.6 billion in aggregate base-term value — a portfolio assembled in under two years by a company that entered 2024 primarily as a crypto miner. The Beacon Point deal follows a wave of similar conversions across the sector, as former miners' grid connections and land banks become the scarcest asset in the AI buildout.
The read-through
An investment-grade hyperscaler committing $19.6 billion to a single Texas campus — through a former bitcoin miner — says demand for powered land remains far ahead of what traditional data center developers can deliver.