Companies such as Hut 8, Core Scientific (CORZ), Hive Digital (HIVE), and Bit Digital (BTBT) have repositioned some of their power and infrastructure assets to serve AI workloads, betting that long-term contracts with hyperscale clients will generate more stable, higher-margin revenue than cryptocurrency mining alone.
Hut 8 signed two 15-year triple net leases covering 597 megawatts of computing capacity at its campuses in River Bend, Louisiana, and Beacon Point, Texas. According to Palmer, the deals represent $16.8 billion in contractual base lease value and could reach $42.8 billion if tenants exercise their renewal options.
Palmer said the Beacon Point deal was the main driver of the higher valuation. The broker estimated that the first phase of the project alone represents $9.8 billion in base contract value and approximately $655 million in average annual net operating income.
He also highlighted Hut 8’s financing strategy, noting that the company recently completed a $4.25 billion investment-grade project financing for Beacon Point after raising $3.25 billion for River Bend. These transactions validate management’s strategy of reducing the cost of capital by converting development assets into long-term contractual cash flows.
Beyond its existing projects, the report highlights Hut 8’s development pipeline, which totals more than 9 gigawatts across proprietary, development, construction and management projects, providing what it calls a long runway for future growth.
