Companies like Hut 8, Core Scientific (CORZ), Hive Digital (HIVE), and Bit Digital (BTBT) have repositioned parts of their energy and infrastructure assets to serve AI workloads, betting that long-term contracts with hyperscale clients will generate more stable and higher-margin revenues than cryptocurrency mining alone.
Hut 8 has signed two 15-year, triple-grid, buy-or-pay leases covering 597 megawatts of IT capacity at its River Bend, Louisiana, and Beacon Point, Texas, campuses. According to Palmer, the deals represent $16.8 billion in contracted base term lease value and could increase to $42.8 billion if tenants exercise 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 carries $9.8 billion in base term contract value and about $655 million in average annual net operating income.
He also touched on Hut 8’s financing strategy, noting that the company recently completed $4.25 billion of investment-grade project financing for Beacon Point after raising $3.25 billion for River Bend. The deals validate management’s strategy of reducing its cost of capital by converting development assets into long-term contracted cash flows.
Beyond its existing projects, the report highlighted Hut 8’s development portfolio, which totals more than 9 gigawatts in projects under exclusivity, development, construction and management, providing what it called a long runway for future growth.
