Hut 8 signs $9.8B AI data center lease for Beacon Point campus

• Hut 8 (NASDAQ:HUT) finalized a 15-year, $9.8 billion lease for 352 MW of IT capacity at its Beacon Point campus.
• The company's shares traded about 6% higher in the pre-market following the announcement of the second major lease agreement.
• Management highlighted that the enterprise's total AI data center portfolio contract value now reaches $26.6 billion.

Hut 8 (NASDAQ:HUT) announced the full commercialization of its 1 GW Beacon Point AI data center campus in Texas.

The company signed a second 15-year, triple-net lease for 352 MW of IT capacity with the same high-investment-grade tenant from Phase 1, bringing that specific tenant’s total contracted capacity to 704 MW.

This new lease holds a $9.8 billion base-term contract value and features a 3% annual base rent escalator.

Management expects this agreement to contribute approximately $655 million per year in net operating income (NOI) upon stabilization, totaling $9.8 billion over the cumulative base term.

Following the announcement, Hut 8 shares traded about 6% higher in the pre-market.

At the campus level, the total base-term contract value now rises to $19.6 billion, generating an average annual NOI of $1.31 billion.

If all renewal options are exercised, the potential contract value of the Texas campus could reach $50.2 billion.

Across the broader Hut 8 AI data center portfolio, the company's contracted IT capacity currently sits at 949 MW.

This translates to an aggregate base-term contract value of $26.6 billion and an expected average annual NOI of more than $1.75 billion, entirely backed by investment-grade counterparties.

Additionally, the company highlighted its previously launched $250 million stock repurchase program.

This initiative authorizes the buyback of up to 6,159,439 shares, representing 5.0% of its current outstanding common stock.