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Hut 8 Stock Surges on Full Commercialization of Texas AI Data Center
Shares of Hut 8 (HUT) surged more than 10% in morning trading after the company announced it had fully commercialized its 1-gigawatt Beacon Point AI data center campus in Texas. The milestone was reached after securing a second multi-billion dollar, long-term lease with a key investment-grade tenant.
The Beacon Point Milestone
Hut 8 disclosed it signed a second 15-year, 352-megawatt (MW) IT lease with a base-term contract value of $9.8 billion. The agreement, struck with the same tenant as the campus's first phase, brings the total contracted IT capacity at Beacon Point to 704 MW and lifts the total campus-level contract value to $19.6 billion.
Across its entire AI data center portfolio, Hut 8's cumulative contract value now stands at $26.6 billion. The company projects this will generate an average annual net operating income exceeding $1.75 billion.
CEO Asher Genoot noted the rapid execution, stating the company took "this greenfield site from first lease to full commercialization in just months," which he described as a reflection of site quality and delivery credibility.
Market Reaction and Outlook
AdThe news was met with a strong positive reaction from investors and analysts, with the stock's double-digit gain pushing it toward a session high of $107. Adding to the bullish sentiment, analysts at Needham raised their price target on Hut 8 to $145 from a previous $128, while maintaining a Buy rating.
The announcement also appeared to trigger a sympathy rally in the AI infrastructure sector. Shares of peers including IREN and Cipher Mining (CIFR) also climbed sharply in early trading.
Supporting Factors
An active $250 million share repurchase program provides an additional layer of support for the stock. Under the plan, Hut 8 is authorized to buy back up to 6.16 million shares. The stock's significant move occurred against a mixed market backdrop, suggesting the surge was driven primarily by company-specific news rather than broad market momentum.
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