Hut 8 Pivots to AI Data Center Leases With $7.5 Billion in Project Bonds

Hut 8 has secured $7.5 billion in bonds tied to its AI data center buildout, the company detailed on its Q3 2026 earnings call, anchoring a strategy shift from Bitcoin mining toward long-term leases with AI and high-performance computing tenants.

The contracted capacity sits across two campuses: River Bend in Louisiana and Beacon Point in Texas. Beacon Point reached full commercialization during the third quarter, meaning every bit of capacity there now has a signed customer attached to it.

The debt is structured as non-recourse project-level financing — lenders look to the individual project for repayment, not the company as a whole. Hut 8 also closed a new $1.07 billion senior secured revolving credit facility.

What are the delivery timelines?

Patience is part of the deal. Hut 8 is targeting first data-hall deliveries at River Bend in Q2 2027, with Beacon Point Phase 1 following in Q3 2027. Management emphasized cost-efficient designs across the portfolio.

The broader development pipeline now stands at 7,859 MW, of which 1,330 MW is under construction.

How is the buildout being funded?

Hut 8 executed roughly $250 million in share repurchases, funded in part by selling about 3,100 Bitcoin from its treasury. The board expanded buyback authority to $1 billion.

The scale of the financing matters. The approximately $27 billion figure the company points to represents expected revenue over contracts lasting well over a decade, with first deliveries still targeted for 2027. Construction delays, cost overruns or tenant problems could all push that timeline around. The $7.5 billion in bonds adds significant leverage, even ring-fenced at the project level.

What did the quarter look like?

The transition shows up directly in the income statement. Revenue for Q3 2026 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 other words, the mining business is shrinking in the revenue mix while the AI infrastructure bet hasn't started generating lease revenue yet. The EBITDA gain suggests the company is managing costs through the gap.

Is there a capacity gap to watch?

Yes, and it's sizable. The 1,330 MW under construction already exceeds the 949 MW contracted, and the 7,859 MW pipeline is far larger still. That spread is a bet on future tenant demand — and a source of risk if leases don't materialize at the pace the buildout implies.

The Bitcoin treasury adds another variable. Having sold 3,100 BTC to fund buybacks, the company now faces a choice between continuing to monetize its remaining holdings or holding them as a balance-sheet asset while project-level debt carries the construction burden.

The markers ahead are concrete: the Q2 2027 River Bend delivery, the Q3 2027 Beacon Point Phase 1 handoff, new lease announcements closing the gap between contracted and under-construction capacity, and the pace of any further Bitcoin sales.