Hut 8 just signed its second 15-year lease at the Beacon Point campus in Nueces County, Texas, locking in another 352 MW of IT capacity worth $9.8 billion. That mirrors the first phase signed back on May 6, 2026, bringing the campus’s total contracted IT capacity to 704 MW and its combined base-term contract value to $19.6 billion.

The Beacon Point buildout

The second lease carries a 3% annual escalator, identical terms to Phase 1. Together, the two phases fully commercialize the Beacon Point campus, which has secured 1,000 MW of utility capacity to support the 704 MW of IT load.

Initial energization of the campus is targeted for Q1 2027. Phase 2 data hall delivery is expected in Q2 2028.

The 15-year base terms include renewal options that could push the total potential value of the Beacon Point campus alone to roughly $50.2 billion over the full extended period. The company closed $4.25 billion in project-level financing for Phase 1 back in June 2026, providing the financial runway to begin construction.

From pickaxes to GPUs

That thesis was already validated at River Bend, Hut 8’s campus in Louisiana, where the company secured a 245 MW lease valued at $7 billion. Beacon Point is the same playbook at nearly triple the scale.

Across its entire portfolio, Hut 8 now has 949 MW of AI data center capacity under contract, with an aggregate base-term value of $26.6 billion. The company’s potential annual net operating income from these assets is projected to exceed $1.75 billion.

The company was founded as a pure-play Bitcoin miner. It went through the 2022 crypto winter, merged with US Bitcoin Corp in late 2023, and has since systematically repositioned itself as an energy infrastructure and AI compute provider.

Why this matters for investors

The 15-year lease structure with 3% annual escalators provides predictable, compounding revenue. Unlike Bitcoin mining, where revenue fluctuates with hash rate, difficulty adjustments, and token price, these contracts lock in cash flows for over a decade.

The $4.25 billion project financing for Phase 1 alone shows the scale of debt Hut 8 is taking on. Construction delays could also push delivery timelines and strain the company’s balance sheet.

A $26.6 billion contracted portfolio with projected NOI exceeding $1.75 billion annually is not a mining company anymore. Investors evaluating HUT on Nasdaq or TSX need to decide whether they’re pricing it as a crypto stock or as an AI-era power company. The stock’s trajectory from here likely depends less on Bitcoin’s next halving cycle and more on whether those Q1 2027 energization timelines hold.