Hut 8 Corp. (NASDAQ:HUT) shares are trading higher Monday after the company announced it has fully commercialized its 1-gigawatt Beacon Point AI data center campus through a second 352-megawatt IT lease, bringing the campus-level base-term contract value to $19.6 billion.

The $9.8B Lease Doubles IT Capacity

The 15-year triple net lease is valued at $9.8 billion over its base term, inclusive of a 3.0% annual base rent escalator, and doubles the existing tenant’s contracted IT capacity at the campus to 704 MW. The tenant — a high-investment-grade company that also executed the Phase 1 lease — will be served by a second 352 MW AI factory designed to NVIDIA’s DSX reference architecture.

The transaction fully commercializes Beacon Point against its 1,000 MW of utility capacity, secured under an interconnection agreement with AEP Texas. Initial Phase 2 data hall delivery is expected in the second quarter of 2028, with three five-year renewal options that could increase potential campus-level contract value to $50.2 billion if all are exercised.

“We took this greenfield site from first lease to full commercialization in just months,” said Asher Genoot, CEO of Hut 8. “That speaks to the quality of the sites we originate, the credibility of our delivery, and the long-term orientation of our partnerships. The opportunity ahead of us is to apply the same model across our development pipeline.”

Portfolio Highlights

With the transaction, total contracted IT capacity across Hut 8’s AI data center portfolio rises to 949 MW — 704 MW at Beacon Point and 245 MW at River Bend — supported by 1,330 MW of utility capacity. Cumulative base-term contract value across the portfolio now stands at $26.6 billion, with expected average annual NOI of more than $1.75 billion. All of Hut 8’s contracted AI data center capacity is leased to or backstopped by investment-grade counterparties.

Hut Shares Climb Higher

HUT Price Action: At the time of publication, Hut shares are trading 11.56% higher at $102.02, according to data from Benzinga Pro.

This illustration was generated using artificial intelligence via Midjourney.