Overview
- Hut 8 signed a second 15-year, triple-net lease for 352 MW at its Beacon Point campus, bringing Beacon Point to 704 MW and the company’s total contracted AI capacity to 949 MW.
- The second Beacon Point lease carries a $9.8 billion base-term value and together with the first phase gives the Texas campus $19.6 billion in base-term contracts and a combined portfolio value of $26.6 billion.
- Analysts raised targets after the deal with Needham lifting its Hut 8 price target to $145 and Benchmark to $195 while Needham also raised its 2028 revenue and adjusted EBITDA forecasts.
- Hut 8 says initial campus energization is planned for Q1 2027 and Phase 2 data-hall deliveries begin in Q2 2028, and the company has already arranged substantial project-level financing for the sites.
- Key near-term risks to realizing stable lease income include securing ERCOT/AEP approvals, meeting construction schedules and costs, and concentration risk from large, undisclosed tenants.