Hut 8 Secures Five-Year Energy Contract, Shares Rise Over 15%
Hut 8's power unit secured a five-year capacity contract with Ontario’s Independent Electricity System Operator for 310 megawatts of natural-gas generation. The agreement covers plants in Iroquois Falls, Kingston, Kapuskasing, and North Bay, operated by Hut 8's joint venture with Macquarie Equipment Finance.
- Starting May 2026, the plants will generate an average income of CAD $530 ($388.5) per megawatt-business day in the first year, with partial inflation indexation.
- The revenue is backed by a government-supported AA3-rated agency.
- Ontario anticipates a 75% increase in electricity demand by 2050, with a potential shortfall of up to 5.8 gigawatts by 2030.
- Following the news, HUT shares rose over 15%, positively impacting the mining sector.
- Cleanspark, MARA Holdings, and Riot Platforms each saw gains of less than 10%.
- American Bitcoin Corp, 80% owned by Hut 8, raised $220 million from accredited investors, including $10 million in bitcoin.