finance
Hut 8 Signs $9.8 Billion Texas Lease, IREN Lands $2.8 Billion AI Contracts
Hut 8 signed a 15-year, $9.8 billion lease for the second phase of its Beacon Point AI data center in Texas. IREN announced $2.8 billion in new multiyear cloud services contracts. Shares of several bitcoin miners repositioned as AI providers rose sharply.
Jul 20, 9:49 AM·1m read2 sources
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Hut 8 signed a 15-year, $9.8 billion lease on July 20 for the second phase of its Beacon Point AI data center campus in Texas. The agreement is with the same investment-grade customer that leased the first phase, doubles the tenant's footprint to 704 megawatts, and fully commercializes the site's 1 gigawatt of power capacity.
IREN announced $2.8 billion in new multiyear cloud services contracts with AI developers on the same day.
The company raised its year-end AI Cloud annualized run-rate revenue target to more than $4 billion, stating that about 85 percent of that revenue is now under contract. Hut 8 shares rose as much as 17 percent.
Cipher Mining advanced 11 percent, TeraWulf added 6.4 percent, Riot Platforms rose 5 percent and MARA Holdings climbed 9 percent. The CoinShares Bitcoin Miners ETF increased 8.5 percent. The moves reversed recent share-price declines among AI infrastructure companies after investors questioned whether demand for new data center capacity would continue.
Chinese firms had released open-source AI models that appeared to require less computing power than Western rivals. Reports that Meta Platforms was considering a cloud service to rent AI computing capacity had also weighed on sentiment.
