NEW YORK, July 20, 2026, 1:55 p.m. EDT
Shares of Hut 8 rose 11.5% to $101.99 as of 1:39 p.m. EDT on Monday, after announcing a second AI lease valued at $9.8 billion. U.S. markets remained open, with the Nasdaq Composite up 0.4%.
The contract, spanning 15 years, applies to 352 megawatts of IT capacity. Hut 8 announced that this brings the Beacon Point campus, with a total of 1,000 MW, to full commercial operation. A tenant, whose identity was not disclosed, is now leasing 704 MW at the site.
The terms match those of the initial phase. The primary focus for Phase 2 shifts to delivery, rather than pricing.
Approximately 37% of the anticipated yearly net operating income, or NOI, is attributed to Phase 2. The initial hall is planned to open in the second quarter of 2028.
The unit economics across Hut 8’s three disclosed AI leases are almost the same.
| Project | IT capacity | Base-term value | Projected average annual NOI | Initial delivery |
|---|---|---|---|---|
| River Bend | 245 MW | $7.0 billion | $454 million | Q2 2027 |
| Beacon Point Phase 1 | 352 MW | $9.8 billion | $655 million | Q3 2027 |
| Beacon Point Phase 2 | 352 MW | $9.8 billion | $655 million | Q2 2028 |
| Total | 949 MW | $26.6 billion | Above $1.75 billion | 2027–2028 |
Figures reflect company outlook. NOI is shown at full stabilization; delivery timing as set by management.
Every lease equates to approximately $1.85 million in yearly NOI for each contracted megawatt, underscoring the importance of delivery.
Beacon Point Phase 1 is scheduled for completion in Q3 2027, with Phase 2 expected approximately nine months after.
Monday’s estimated increase in market capitalisation is close to $1.17 billion, roughly 1.8 times the anticipated annual NOI for Phase 2.
This is not a finished asset valuation. It measures the intraday equity increase against management’s yearly NOI objective.
The lease includes a 3% yearly rent increase. If optional renewals are exercised, Beacon Point’s total contract value could reach $50.2 billion.
Site prep is in progress, and key long-lead equipment has been secured. The timeline for initial campus energization is unchanged for Q1 2027.
Hut 8 stated that Phase 2 does not require additional utility capacity and will implement Nvidia Corp.’s NASDAQ:NVDA DSX reference architecture. A revised blueprint boosted Phase 1 IT capacity by 57% without increasing the footprint.
Hut 8 funded Phase 1 using $4.25 billion in fully amortizing, non-recourse notes. Monday’s announcement did not mention a distinct financing arrangement for Phase 2.
Chief Executive Asher Genoot described the expansion as “the strongest validation an asset can receive.” Genoot stated Hut 8 intends to implement this model in additional locations. PR Newswire
Peer IREN Ltd. NASDAQ:IREN jumped 20.3% following the disclosure of $2.8 billion in AI cloud agreements. Hut 8’s increase lagged behind its earlier surge of more than 25% that came after the initial Beacon lease in May. Capacity and expected NOI are the same for both Beacon phases.
Nick Giles, an analyst at B. Riley Securities, stated his group would be “strong buyers.” Hut 8 is set to publish its second-quarter earnings on August 4, prior to the market open. Barron’s
Risks: Phase 2 is exposed to risks related to construction, supply chains, and funding prior to 2028. The tenant’s identity has not been disclosed. The projected NOI does not factor in corporate expenses or depreciation.
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