The stock of Hut 8 (NASDAQ: $HUT) is up 11% on July 20 after the company announced a new artificial intelligence (A.I.) data centre deal.
Hut 8 said that it agreed a 15-year $9.8 billion U.S. lease at its Beacon Point data centre campus in Texas.
Management at Hut 8 said the new contract comes from an existing data centre tenant, which it refused to name.
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However, Hut 8 reiterated that the tenant is a high-investment-grade company and that it has doubled its contracted computing capacity to 704 megawatts.
Hut 8 is now based in Florida. However, the company started out in Canada as a Bitcoin (CRYPTO: $BTC) miner.
Like many crypto miners, Hut 8 has pivoted in recent years to running A.I. data centres and leasing compute power to large technology companies.
Hut 8 said this is its second long-term lease agreement at its Texas data centre campus, fully commercializing the one-gigawatt facility and increasing its contracted data centre portfolio.
Hut 8’s Texas data centre now has contracted $26.6 billion U.S. in annual net operating income.
There are also three five-year renewal options under each of the two lease agreements at the Texas campus, increasing the potential contract values to $50.2 billion U.S.
HUT stock has risen 380% in the last 12 months to trade at $102.42 U.S. per share.
