Shares of Hut 8 (HUT), a company that mines Bitcoin and builds AI infrastructure, rose as much as 14% after announcing a new lease agreement. The 15-year lease is for space at their Beacon Point data center in Texas and is valued at $9.8 billion, also boosting confidence in other companies within the industry.
With this new agreement – signed with the same company that initially leased space at the site – the entire 1-gigawatt campus is now fully leased. Hut 8 will expand its AI computing power by another 352 megawatts using Nvidia technology, bringing the total amount of computing space the tenant has secured at the location to 704 megawatts.
This new lease agreement means Beacon Point is now fully utilizing its 1-gigawatt power capacity and increases the total value of the initial contract to $19.6 billion.
Hut 8’s stock price jumped to $104.51 on Monday, and that positive momentum spread to other companies involved in high-performance computing. IREN increased by 15%, Cipher Mining rose 11%, and TeraWulf went up 6.4% when trading began. The CoinShares Bitcoin Miners ETF also performed well, increasing by 9.3%.
The company’s stock price has jumped recently, following concerns among investors about whether AI companies will keep spending heavily on data centers. These concerns arose after some AI infrastructure companies experienced difficulties in recent weeks.
Initial optimism faded when Chinese companies unveiled new AI models that seemed to run efficiently with less processing power compared to those from Western tech firms. Prior to this, news that Meta (Facebook’s parent company) was exploring a service to rent out AI computing resources sparked worries about an increase in supply, potentially impacting data center businesses.
2026-07-20 16:50