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Hut 8 Mining (HUT) is trading sharply higher after signing a second 15-year, $9.8 bln triple-net lease for 352 MW of IT capacity at its Beacon Point AI data center campus in Texas. The existing high-investment-grade tenant doubled its contracted footprint to 704 MW, fully commercializing the campus against its 1,000 MW of secured utility capacity.

• Lease economics: The agreement includes a 3% annual base-rent escalator and is expected to contribute average annual NOI of approximately $655 mln upon stabilization. Beacon Point's campus-level base-term contract value now totals $19.6 bln, with expected average annual NOI of roughly $1.31 bln.
• Portfolio expansion: Across Beacon Point and River Bend, HUT now has 949 MW of contracted AI data center capacity, supported by 1,330 MW of utility capacity. Aggregate base-term contract value now totals $26.6 bln, with expected average annual NOI of more than $1.75 bln. All contracted AI data center capacity is leased to or backstopped by investment-grade counterparties.
• Recent developments: Today's agreement follows the initial 352 MW Beacon Point lease signed in May and the $4.25 bln of investment-grade, non-recourse project financing HUT closed in June for Phase 1.
• Development timeline: No additional utility capacity is required to support Phase 2. Site preparation is underway and long-lead critical equipment has been procured, with initial energization still on track for Q1 2027. Initial Phase 1 and Phase 2 data hall deliveries are expected in Q3 2027 and Q2 2028, respectively.
• Backdrop: In Q1, Compute generated $66.0 mln of HUT's $71.0 mln in revenue, including ASIC Compute, AI Cloud, and Traditional Cloud. ASIC Compute revenue was generated primarily through American Bitcoin, while Digital Infrastructure reported $1.3 mln in revenue. HUT reports Q2 results before the open on August 4.

Briefing.com Analyst Insight

HUT has now fully commercialized Beacon Point after signing an initial 352 MW lease in May. The existing tenant's decision to double its commitment on substantially similar terms reinforces the appeal of the site, HUT's design capabilities, and the strength of the customer relationship. The new lease adds an expected $655 mln of average annual NOI upon stabilization, providing considerably greater visibility into HUT's long-term AI infrastructure economics. The opportunity contrasts with HUT's current revenue mix, as Q1 revenue remained concentrated in Compute while Digital Infrastructure contributed just $1.3 mln. The agreement further shifts HUT's longer-term business mix toward contracted, investment-grade infrastructure revenue. Realizing those economics will likely depend on completing the buildout and delivering both phases on schedule in 2027 and 2028.