Overview
- Hut 8 announced Monday that it signed a second 15-year, 352 MW triple-net lease at its Beacon Point campus in Nueces County, Texas, bringing the site’s base-term contract value to $19.6 billion.
- The two Beacon Point leases cover 704 MW of IT capacity and raise Hut 8’s contracted AI portfolio to about 949 MW when combined with the 245 MW River Bend campus.
- Both leases include 3% annual base-rent escalators and are modeled to produce roughly $1.31 billion of average annual net operating income once stabilized.
- Analysts have lifted price targets after the deal, with Needham raising its target to $145 and Benchmark to $195, and valuations explicitly include Hut 8’s digital-asset holdings and its 60% stake in American Bitcoin.
- Near-term execution risks are now the focus: initial campus energization is targeted for Q1 2027, Phase 2 data-hall delivery is expected in Q2 2028, and investors will watch construction costs, ERCOT approvals, financing plans and the company’s early‑August earnings update for progress.