AI Infrastructure Stock Hut 8 (TSX: HUT) Makes TSX Top Gainer List As Investors Continue Bet On Beacon Point Data Center
The stock makes the TSX top percentage gainers list today following institutional buying and analyst upgradesaccording to Perplexity.
AdvertisementHut 8 is trading at 135.02 +9.65 (+7.70%) in early trading on the TSX, with a morning high of $138.50.
In late July Hut 8 announced the commercialization of the second phase of its one-gigawatt Beacon Point data center campus in Nueces County, Texas through a second 15-year, $9.8 billion lease (the "Agreement") for 352 megawatts (MW) of IT capacity (the "Transaction"). The tenant, the high-investment-grade company that executed the Phase 1 lease, has doubled its contracted IT capacity at the campus to 704 MW. The Transaction fully commercializes the Beacon Point campus against its 1,000 MW of utility capacity, secured under an interconnection agreement with AEP Texas for electric delivery service.
Transaction Highlights- Lease Structure: Triple net (NNN) lease executed on substantially the same terms as the Phase 1 lease. Tenant Profile: High-investment-grade company; the Phase 1 tenant. Compute Architecture: Hut 8 to deliver a second 352 MW AI factory designed to NVIDIA's DSX reference architecture for gigawatt-scale AI infrastructure supported by 500 MW of utility capacity. Base-Term Contract Value: $9.8 billion over a 15-year base lease term, inclusive of a 3.0% annual base rent escalator; base-term contract value for the full 1,000 MW campus rises to $19.6 billion. NOI Contribution: Expected cumulative NOI contribution of $9.8 billion over the base term, or an average of $655 million per year upon stabilization; average annual NOI for the full 1,000 MW campus rises to $1.31 billion. Upside Economics: Three 5-year renewal options per lease increase potential campus-level contract value to $50.2 billion if all options are exercised. Delivery Timeline: Initial Phase 2 data hall delivery expected in Q2 2028.
With the Transaction, Beacon Point becomes Hut 8's first fully commercialized AI data center campus. The Company secured the site, contracted the campus in full with investment-grade cash flows, financed Phase 1 with investment-grade debt, and commenced construction. Together, these stages demonstrate structural features of the Company's disciplined, power-first development model, from origination through delivery:
- Power-first underwriting preserves optionality across end markets: Initially underwritten on a speed-to-power thesis to serve Hut 8's affiliated customer, American Bitcoin Corp., Beacon Point is now fully contracted under two 15-year AI leases to a high-investment-grade counterparty. First-principles approach to design and partnership supports efficient commercialization: Hut 8 has designed the campus around its tenant's evolving requirements throughout development, including a redesign of the first data hall for Phase 1 to NVIDIA's DSX reference architecture, enabling 57% more IT capacity within the same land and utility footprint. With this second lease, the tenant doubled its contracted capacity on substantially the same terms. Partnership-driven execution model mitigates execution risk: The campus's full 1,000 MW of utility capacity is secured under an interconnection agreement with AEP Texas for electric delivery service, and no incremental capacity is required to serve the Phase 2 lease. Hut 8 will implement the partnership-driven model first implemented at River Bend and Beacon Point Phase 1 to deliver the site. Site preparation is underway, and long-lead critical equipment has been procured. Initial energization remains on schedule for Q1 2027.
Asher Genoot, CEO of Hut 8, said:
Contracted Portfolio Highlights- Contracted Capacity: Total contracted IT capacity across Hut 8's AI data center portfolio of 949 MW, comprising 704 MW at Beacon Point and 245 MW at River Bend. Contract Value and NOI Contribution: Cumulative base-term contract value across Hut 8's AI data center portfolio of $26.6 billion, with expected average annual NOI of more than $1.75 billion. Counterparty Credit: 100% of Hut 8's AI data center portfolio is leased to or backstopped by investment-grade counterparties.
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