The $9.8 Billion Reason HUT Stock Is Up Today

Hut 8 (HUT) shares closed about 10% higher on Monday after the company announced a second 15-year lease worth $9.8 billion at its Beacon Point AI data center campus in Nueces County, Texas. The deal fully commercializes the one-gigawatt facility, with the existing “high-investment-grade” tenant doubling its contracted IT capacity to 704 megawatts.

This second triple-net lease was executed on substantially the same terms as the first phase lease secured in May, including a 3% annual base rent escalator and three five-year renewal options.

Including today’s gains, HUT stock is trading at nearly 2x its price at the start of 2026. 

Significance of the Announced Deal for HUT Stock

The combined base-term contract value for the Beacon Point campus now stands at $19.6 billion, with potential value rising to $50.2 billion if all renewal options are exercised. 

Hut 8 projects the fully commercialized campus will generate average annual net operating income of $1.31 billion upon stabilization. 

Across its entire AI data center portfolio, including the 245 MW River Bend project in Louisiana, HUT’s total contracted capacity has reached 949 MW backed by 1,330 MW of utility capacity, with aggregate base-term contract value of $26.6 billion and expected annual net operating income exceeding $1.75 billion.

Does it Warrant Buying HUT Shares Today?

The announcement represents a major validation of Hut 8’s pivot from Bitcoin (BTCUSD) mining to artificial intelligence infrastructure. 

Beacon Point was originally developed to serve affiliated BTC miner American Bitcoin (ABTC) but was entirely redesigned around Nvidia (NVDA) DSX reference architecture to accommodate AI workloads. 

CEO Asher Genoot emphasized that the tenant’s decision to double its footprint constitutes the strongest validation the asset can receive. 

The Phase 2 facility, covering 352 MW of IT capacity supported by 500 MW of utility power, is expected to deliver its first data hall in the second quarter of 2028, with initial campus energization on track for the first quarter of 2027.

Wall Street Is Bullish on Hut 8 for 2026

Wall Street responded favorably, with B. Riley Securities maintaining a “Buy” rating and $130 price target, while KBW reiterated its “Outperform” rating with a $138 target. 

Analyst estimates suggest a 19% yield on cost at the midpoint of Hut 8’s capex outlook, and KBW noted that only 139 MW of future colocation growth had been priced into the share price before the announcement. 

Lucid Capital Markets holds the highest target at $226, reflecting the substantial long-term value embedded in the contracted portfolio. 

The consensus rating on HUT stock sits at “Strong Buy” currently, with the mean price objective of about $138 indicating potential upside of about 38% from here. 

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