Hut 8 Pivots From Bitcoin Mining to $27 Billion AI Data Center Leases

Hut 8 Corp. (NASDAQ: HUT) told investors on November 4 that it has contracted 949 megawatts of IT capacity expected to generate approximately $27 billion in base-term revenue over 15- to 17-year leases, according to its third-quarter earnings call. The figure marks the clearest signal yet that the Bitcoin miner intends to operate primarily as an AI data center landlord rather than a mining operator.

Management described a "power-first" energy infrastructure model built around gigawatt-scale campuses. Mining, the business that built the company's name, is no longer the main focus of the strategy.

Where does the 949 MW sit?

The contracted capacity spans two sites: River Bend in Louisiana and Beacon Point in Texas. Beacon Point reached full commercialization during the third quarter, meaning every unit of capacity there now carries a signed customer. The tenants targeted by the leases are AI and high-performance computing operators.

The delivery timeline still requires patience. Hut 8 targets its first data-hall deliveries at River Bend in Q2 2027, with Beacon Point Phase 1 following in Q3 2027. Beyond the contracted base, the development pipeline stands at 7,859 MW, of which 1,330 MW is under construction, and the company says it is emphasizing cost-efficient designs.

The gap between what is contracted and what is being built is the number to watch: 1,330 MW under construction already exceeds the 949 MW contracted.

How is Hut 8 financing the buildout?

The company has secured $7.5 billion in bonds tied to projects including River Bend and the first phase of Beacon Point. The debt is structured as non-recourse project-level financing, meaning lenders look to the individual projects for repayment rather than to the corporate balance sheet.

Hut 8 also closed a new $1.07 billion senior secured revolving credit facility. On the equity side, it executed roughly $250 million in share repurchases, funded in part by selling approximately 3,100 Bitcoin, and expanded its buyback authorization to $1 billion.

Even ring-fenced at the project level, $7.5 billion in bonds represents significant leverage against revenue that will not begin flowing until 2027 at the earliest.

What do the quarterly numbers show?

The transition is visible in the income statement. Q3 2026 revenue came in at $71.1 million, down from $83.5 million in Q3 2025. Adjusted EBITDA moved the other way, rising to $33 million from $30.5 million a year earlier.

In plain terms: the mining business is shrinking while the balance sheet reorients toward long-dated lease income that has not started yet.

What could still go wrong?

The $27 billion figure is expected revenue across contracts lasting well over a decade, not booked income. Construction delays, cost overruns, or tenant problems could each push the timeline. First deliveries remain targeted for 2027.

The company also faces a market-structure question: it must lease the difference between 949 MW contracted and 7,859 MW of pipeline, roughly eight times the contracted base. How much of the remaining Bitcoin treasury management chooses to retain is a further marker of its conviction in the pivot.

The near-term checkpoints are specific: River Bend data-hall deliveries in Q2 2027 and Beacon Point Phase 1 handoff in Q3 2027, with new lease announcements between now and then indicating whether the pipeline converts into contracts on schedule.

By Elena Vasquez