Hut 8 secures long-term leases for Nvidia-based AI data centers in Texas, driving its stock higher.

Hut 8 (HUT) shares rose last week following confirmation that the company has secured long-term data center leases with Nvidia. Reports indicate the agreement covers Hut 8’s entire one-gigawatt facility in Texas, with base terms and renewal options potentially totaling up to $50 billion over a 30-year period. This marks a significant strategic pivot for a company historically known primarily as a Bitcoin miner.

In addition to the Nvidia agreement, Hut 8’s Beacon Point campus—a separate one-gigawatt AI site located in Nueces County, Texas—has now been fully commercialized. The company recently executed a second 15-year lease valued at $9.8 billion for 352 megawatts of capacity, bringing the campus’s total contracted capacity to 704 megawatts with the same investment-grade tenant.

Hut 8’s stock has experienced notable volatility in recent months. Shares retreated from the $110–$115 range several weeks ago, dipping into the high $80s before finding stability. The recent 6% gain suggests investors are increasingly valuing the company as an AI infrastructure provider rather than a cryptocurrency proxy. Multi-decade commitments with a technology leader like Nvidia provide revenue visibility that pure-play crypto miners typically lack.

Underpinning this shift is Hut 8’s “power-first” AI infrastructure strategy. Rather than focusing exclusively on one vertical, the company prioritizes securing electricity and land, then commercializes the assets through whichever application offers the strongest economic return at the time, whether that be Bitcoin mining or AI data centers. Management states this approach has helped the company bypass major supply chain bottlenecks and secure backing from Texas regulators concerned with grid reliability and community impact.

Despite the positive contract wins, Hut 8 remains a high-beta stock. The company is currently in a heavy capital expenditure phase, operating with negative margins while funding the development of new campuses. While the market appears to be rewarding long-term contractual visibility over near-term profitability, Hut 8’s shares are likely to remain volatile as these AI infrastructure agreements face broader market scrutiny.

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