Hut 8 said on Wednesday that it has signed a second 352 MW IT lease with the Phase 1 tenant at its Beacon Point campus, fully commercialising the site. The Phase 2 lease carries about $9.8 billion of expected base term contract value and about $655 million of expected average annual net operating income on a triple net, take or pay basis, taking the campus total to about $19.6 billion of expected contract value and the company’s AI data centre portfolio to about $26.6 billion. Delivery of the first Beacon Point Phase 2 data hall is targeted for the second quarter of 2028, a year after Phase 1.
The financing moved with the leasing. Hut 8 closed a four year, $1.07 billion senior secured revolving credit facility at the parent level, with no borrowings outstanding at September 30, and it is evaluating financing structures for Beacon Point Phase 2, which it expects to fund at the project level. On November 2 the board added $750 million to the share repurchase programme, taking the total authorisation to $1.0 billion, after the company completed $250 million of buybacks funded with proceeds from selling about 3,100 Bitcoin during and after the quarter.
The quarter itself was carried by the Bitcoin balance sheet rather than operations. Revenue fell to $71.1 million from $83.5 million a year earlier, almost all of it from compute, while net income rose to $189.5 million from $50.6 million because it included $413.8 million of mostly unrealised gains on digital assets. Adjusted EBITDA was $33.0 million, against $30.5 million a year earlier. The company held about $6.6 billion of cash and short term investments at September 30, plus Bitcoin holdings of $697.4 million attributable to Hut 8 and $702.9 million attributable to American Bitcoin.
Hut 8 also agreed to buy two energised sites in West Texas, with up to 230 MW of utility capacity at full energisation, from affiliates of Poolin Technology through a Chapter 11 sale process, for up to $180 million, with closing expected as early as this quarter. Its development pipeline stood at about 7,859 MW at September 30, with 1,330 MW under construction across Beacon Point and River Bend, where the first data hall is due in the second quarter of 2027, and capacity under exclusivity up 1,300 MW in the quarter to 3,180 MW.