Hut 8 signs $26.6B AI leases, sells Bitcoin for buybacks
Hut 8 shifted emphasis from Bitcoin mining to AI data-centre development: the company fully commercialised its Beacon Point AI campus by signing a second 352 MW IT lease, bringing expected aggregate base-term contract value across its AI portfolio to about $26.6 billion and reporting 1,330 MW of utility capacity under construction. The company funded share repurchases with Bitcoin sales and arranged a $1.07 billion revolving credit facility, highlighting a balance-sheet reallocation from mining-era assets to AI growth.
AI leases and capacity: scale and timing
Beacon Point: second 352 MW IT lease executed, which fully commercialises the campus. Aggregate base-term contract value across AI data-centre portfolio: about $26.6 billion.
Under construction: 1,330 MW of utility capacity across major AI projects.
Exclusivity: 1,300 MW of additional energy capacity entered exclusivity during the quarter, bringing total in exclusivity to 3,180 MW. Exclusivity marks a development milestone rather than an operating facility or guaranteed utility interconnection.
Revenue recognition and delivery schedule
Long-term leases indicate multi-year commitments rather than realised revenue. Key delivery targets: initial River Bend data hall in Q2 2027, Beacon Point Phase 1 in Q3 2027, Beacon Point Phase 2 in Q2 2028. Execution depends on power availability, construction, commissioning, financing and tenant readiness.
Bitcoin treasury and financing moves
Share repurchases funded by Bitcoin sales: $74.7 million repurchased using proceeds from approximately 954 BTC sold, followed by $175.3 million repurchased using proceeds from roughly 2,148 BTC sold. Repurchase authorisation subsequently increased to $1 billion.
Credit facility: a $1.07 billion senior secured revolving credit facility arranged. Committed borrowing capacity provides flexibility but is distinct from cash revenue and amounts drawn. External analysis has noted financing pressure tied to miners’ AI expansions, which is visible in Hut 8’s capital structure and treasury actions. Source: NewsBTC.
What to track next
Milestones: on-time delivery of River Bend and Beacon Point phases, maintenance of acceptable project-level financing terms, conversion of contracted capacity to operational sites and realised cash flow. The business narrative has shifted toward electricity access and long-term AI tenants rather than Bitcoin retention, which changes the revenue profile but still requires disciplined spending and independently verifiable execution.
Featured image: Illustrative photograph of data-centre server racks. Photo: Carl Lender via Wikimedia Commons, licensed under CC BY 2.0.
Authors credited by the source: NewsBTC Editorial Team
Published by Holder based on an external source.
