Hut 8 Stock Jumps 14% After $9.8 Billion Data Center Lease Deal

Hut 8 shares climbed as high as 14% on Monday after the Bitcoin mining company locked in a massive $9.8 billion lease for the second phase of its Beacon Point data center campus in Texas. The deal runs 15 years and was signed with the same tenant that took on the first phase of the project, a company with strong credit backing.

With this new agreement, Hut 8 has now fully leased out the entire 1-gigawatt campus. The company plans to build an additional 352 megawatts of AI computing power using Nvidia’s data center technology, pushing the tenant’s total capacity at the site to 704 megawatts. Combined, the two leases push Beacon Point’s total contract value up to $19.6 billion.

Rally Spreads Across Compute Stocks

Hut 8 stock touched $104.51 during Monday’s trading, and the excitement spread to other players in the sector. IREN rose 15%, Cipher Mining gained 11%, and TeraWulf added 6.4%. A fund tracking Bitcoin mining companies jumped 9.3% as well.

Why It Matters

The rally comes at a time when AI infrastructure stocks had been under pressure. Investors grew nervous after new open-source AI models from Chinese developers showed they could run on far less computing power than expected. Concerns also grew after reports surfaced that Meta was exploring plans to rent out its spare AI computing capacity, raising fears of oversupply in the market.