Bitcoin mining company Hut 8 has entered into a transformative 15-year lease agreement valued at approximately $7 billion to deliver artificial intelligence data center capacity. The deal, one of the largest infrastructure agreements between a crypto-native firm and the hyperscale AI sector, involves providing 245 megawatts of AI data center infrastructure at Hut 8's River Bend campus in Louisiana.
Google's Role as Financial Backstop: A defining feature of the agreement is Google's commitment to act as a financial backstop. Google will cover lease payments and related obligations over the 15-year base term if the primary lessee, infrastructure provider Fluidstack, is unable to pay. This significantly de-risks the project for Hut 8.
Project Financing and Timeline: The project will be financed with loans tied directly to the data center, with major banks including JP Morgan and Goldman Sachs expected to cover most of the construction cost under an 85% loan-to-cost ratio. Initial construction is already underway, with the first data hall scheduled for completion and commissioning in the second quarter of 2027. Additional data halls are expected to come online over the following year.
Strategic Pivot and Expansion: The agreement deepens Hut 8's strategic pivot into the AI sector, which began in 2024 with the launch of its GPU-as-a-Service offering through subsidiary Highrise AI. The deal is with AI model provider Anthropic, and the contract includes options for capacity to expand to as much as 2,295 megawatts across multiple phases, potentially increasing the total contract value to $17.7 billion if all renewal options are exercised.
Market Reaction and Context: Hut 8's stock jumped nearly 17% in premarket trading following the announcement. The deal reflects a broader trend of crypto-mining firms leveraging their power infrastructure and expertise to capitalize on booming AI demand. Similar large-scale agreements have recently been signed by other industry players like Core Scientific and Galaxy Digital.
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