Hut 8 $9.8B lease as IREN lifts AI cloud target

Hut 8 and IREN announced major AI infrastructure deals that further shift Bitcoin miners toward steadier, long-term revenue. Hut 8 secured a second 15-year triple-net lease for its Beacon Point campus in Texas, covering 352MW of IT capacity. The contract is worth about $9.8B and doubles the tenant’s committed capacity to 704MW, fully commercializing Hut 8’s 1GW Beacon Point AI data center under its current development plan. Hut 8 said the Beacon Point leases raise the campus combined base-term contract value to roughly $19.6B across two long-term agreements. Including River Bend, contracted AI IT capacity totals about 949MW, with estimated base-term contract value around $26.6B. The company expects average annual net operating income above $1.75B from these long-term infrastructure contracts. Renewal options could push potential contract value above $50B if exercised. On the cloud side, IREN reported $2.8B in new multi-year AI cloud contracts with multiple leading AI developers. As a result, IREN increased its year-end 2026 annualized run-rate revenue target to over $4B from $3.7B, and management said about 85% of the revised target is already backed by signed customer commitments. The contracts also include advance payments covering about 45% of related GPU deployment costs, lowering future capex needs. IREN noted a shift in demand toward reliable power and large-scale compute for advanced AI workloads. Overall, the updates highlight how Hut 8’s and IREN’s AI infrastructure expansion is becoming a core narrative for the sector’s next revenue cycle beyond traditional crypto mining.