- Hut 8 fully commercialized its 1GW Beacon Point AI campus with a second $9.8B lease.
- IREN raised its AI cloud revenue target above $4B after securing $2.8B in contracts.
- Bitcoin miners continue shifting toward AI infrastructure for stable long-term revenue.
Both Hut 8 and IREN recently announced significant deals to build infrastructure for artificial intelligence, demonstrating a growing trend for companies to move beyond just Bitcoin mining. Hut 8 signed a new 15-year lease valued at $9.8 billion, and IREN increased its revenue expectations for AI cloud services after securing $2.8 billion in new contracts.
Hut 8 Fully Commercializes Texas AI Campus
Hut 8 has secured another long-term lease – for 15 years – at its Texas data center campus, Beacon Point. This new agreement adds 352 megawatts of IT capacity and is worth around $9.8 billion. It effectively doubles the amount of space already reserved by the current tenant, bringing their total commitment to 704 megawatts.
As a researcher following this development, I can report that our company has officially begun fully commercializing our one-gigawatt Beacon Point AI data center, aligning with our current strategy. This has also increased the total value of our long-term contracts for the campus to around $19.6 billion, thanks to two significant agreements.
HUT Group shares rose 12% after securing a second 15-year lease agreement worth $9.8 billion for 352 megawatts of IT capacity. IREN also saw an 8% increase, raising its year-end cloud revenue target to over $4 billion – up from $3.7 billion – and signed new multi-year customer contracts totaling $2.8 billion.
— matthew sigel, recovering CFA (@matthew_sigel) July 20, 2026
Hut 8 hasn’t revealed the customer’s name, but says it’s a financially strong company. The lease agreement is structured to provide a steady and reliable income stream for Hut 8 over the long term.
Beacon Point is now a major component of Hut 8’s growing network of artificial intelligence facilities in North America. When combined with the River Bend facility, Hut 8’s total contracted IT capacity reaches roughly 949 megawatts across all its locations.
The company currently has around $26.6 billion in contracted AI work with its existing customers. Hut 8 anticipates generating over $1.75 billion in net operating income each year through these long-term agreements.
The leases for Beacon Point include options to renew, which could substantially increase the total value of the contract in the years to come. If these renewal options are used, the campus could potentially generate over $50 billion in contract value over the life of the extended leases.
IREN Expands AI Cloud Business With New Contracts
IREN has secured $2.8 billion in new, multi-year contracts with major AI companies worldwide. Because of these agreements, IREN now expects to reach over $4 billion in yearly revenue by the end of 2026, an increase from their previous target of $3.7 billion.
As a researcher following this closely, I’ve learned that management believes we’re well on track to hit our revised revenue goals – around 85% is already backed up by firm commitments from customers. What’s even better is that these contracts include upfront payments covering roughly 45% of the costs for deploying the GPUs themselves. This significantly lowers how much capital we’ll need in the future.
IREN works with major companies like Microsoft and NVIDIA, as well as fast-growing AI firms such as Perplexity, Figure AI, and Together AI. These partnerships are driven by increasing demand for cloud computing power needed to run advanced artificial intelligence applications.
In the last year, IREN significantly increased its self-built AI cloud capacity, growing from around three megawatts to a planned 480 megawatts by 2026. The company aims to further expand this to 1.2 gigawatts of AI cloud capacity by 2027 through ongoing infrastructure development.
These announcements highlight a growing trend among public Bitcoin mining companies to find reliable, long-term income sources beyond just mining cryptocurrency.
AI companies needing a lot of computing power and stable electricity are increasingly drawn to businesses that already have strong power infrastructure.
2026-07-21 01:20