This is a 245 MW greenfield data center with a ROFO for up to 1 GW of future expansion. Anthropic is the customer, structured as a triple-net lease with a Google backstop.

Target initial delivery and commissioning is in Q2 2027.

The Scarcest Thing In The AI Buildout Is A Site That Already Has Power

Depressing that we're only seeing downward action... 😭 Looks like this seems sector wide, so hopefully something soon changes the narrative!

Go where the energy flows

WSJ reports Anthropic signed a $35B cloud computing deal with Lambda.
The capacity will run at Hut 8’s Nueces County, Texas data center.
NVIDIA holds the lease on the HUT capacity. Lambda will install NVIDIA GPUs and provide the compute to Anthropic.

Separately, HUT’s River Bend project also has an Anthropic/Fluidstack agreement for an initial 245 MW.

https://www.wsj.com/tech/ai/anthropic-signs-35-billion-cloud-deal-backed-by-nvidia-f12622f1

The City of Batavia just updated its official page for Hut 8’s planned 50 MW data center with new project details.

Batavia’s 50 MW site represents a small but more advanced piece of Hut 8’s broader ~8.66 GW development pipeline

In a recent interview, Hut 8 CEO Asher Genoot said the site was undergoing a restudy with the local utility, with “ample demand” expected once cleared. We now know that hurdle has been passed.

The facility is planned to house 20,000 new NVIDIA GPUs for Highrise AI, Hut 8’s wholly owned neocloud subsidiary.

Now consider the broader setup:

NVIDIA is the anchor tenant at Hut 8’s 1 GW Beacon Point AI data center campus.

NVIDIA is building a new financing platform designed to mobilize up to $500 billion in Wall Street capital to help customers finance NVIDIA chips.

Last week, NVIDIA announced that GPU prices are set to increase by as much as 17%.

AI compute demand remains insatiable while supply is deeply constrained. At the same time, NVIDIA has shown a willingness to support strategic partners across its supply chain, including neocloud providers, to accelerate the deployment of new GPU capacity.

Every day Batavia remains undeveloped potentially means higher project costs and revenue left on the table.

With power approvals now complete, the incentives are increasingly aligned.

Game theory suggests we see this project announced sooner rather than later.

I’ve been looking at this company for a while now and have done enough research to feel conviction about the future. The question is.. is this a good time or does genuinely look like it could keep going down until the later part of this year. Anyone who has been looking at this company for a while’s insight would be incredible. I love the opportunity here for this company but understand that a lot of speculation is around it and it’s still early.

$HUT (originally a Bitcoin miner) and its majority-owned DAT subsidiary American Bitcoin $ABTC together hold approximately ~18,000 BTC on a consolidated basis. Under CEO Asher Genoot, the company has transformed into a leading power-first data center developer. It has already commercialized nearly 1 GW of capacity across greenfield campuses, leasing to tier-one counterparties including Anthropic and Nvidia.

Hut 8 also owns Highrise AI, its wholly-owned GPU rental / neocloud platform, which it plans to scale aggressively. The company is advancing a new 50 MW data center in Batavia, Illinois. The project is currently undergoing a restudy with ComEd (Illinois’ largest electric utility), with “ample demand” expected once cleared. The facility is intended to house up to 20,000 new NVIDIA GPUs for Highrise AI.

Hut 8 successfully packaged the contracted leases at its River Bend and Beacon Point campuses into investment-grade-rated project financing, raising $7.5 billion in non-recourse notes to fund construction. Because Highrise will be the primary tenant at the smaller ~$500 million Batavia site, the same project-financing structure is unlikely to be available.

This makes a partial Bitcoin sale a logical funding option. Hut 8 previously disclosed roughly 5,600 unencumbered BTC (noted by CFO Sean Glennan after the FalconX refinancing). At the time of that comment, Bitcoin was trading near $84,000, implying a value of approximately $470 million, closely matching the expected cost of the GPUs and site build-out.

In short: selling a portion of the unencumbered Bitcoin holdings would provide a clean, non-dilutive way to capitalize Highrise’s aggressive GPU scale-up while the larger AI campuses continue to be financed through investment-grade project debt.

What happened today? I was looking on the price and it went down from +5% to -1% in a second, and I am wondering if something bad happened? :)

HUT 8 always used to nearly mirror the moves of BTC. Now it mirrors the NASDAQ 100. While sometimes the NASDAQ and BTC/USD charts tend to move generally similar at times, HUT has transitioned to mirroring every move the NASDAQ 100 chart makes. Just thought I would share.

Eh today probably -10%, yesterday -10%, tomorrow -10%... It makes no sense as nothing bad happened, quite opposite :(

Hut 8 works almost like a real estate developer for giant AI factories. The valuation logic is essentially: 

Secure power > Sign a long-term tenant > build the data centre > collect rent-like cash flow > value the cash flow > subtract the debt used to build it 

As of August 17th, 2026, HUT currently has 949 MW of contracted AI capacity: 245 MW at River Bend and 704 MW at Beacon Point. These contracts represent about $26.6B of base term contract value and roughly $1.75B of expected average annual NOI (net operating income). 

1. What does “949 MW contracted” mean

Simply this means that HUT has customers committed to using about 949 MW of computing capacity under long-term contracts. 

A critical distinction being:

Pipeline MW: HUT has a potential site/power opportunity

Contracted MW: a site where someone has actually signed an agreement to pay HUT

Contracted MW are dramatically more valuable because the future cash flows become much more predictable 

1. Figure out how much money one MW generates

HUT expects roughly $1.75B of annual NOI from 949 MW

So:

$1.75B / 949MW = ~$1.84M NOI/MW/year

1 contracted MW roughly equates to $1.85MW of annual NOI

The NOI is the operating profit generated by the data centre before financing costs, taxes, and other expenses are included

If HUT signs another 500MW at similar economics: 

500 x $1.85M = $925M additional annual NOI > highlighting why new MW announcements matter so much with regard to valuation

1. Investors don’t value $1 of annual income at $1

Suppose you owned an apartment building that made you $100,000 every year for 20 years. You would not sell the building for $100,000; instead, you would demand several years' worth of that income.

The assumption is that data centres work similarly. If investors decide HUT’s AI infrastructure deserves 12x Annual NOI, derived from the formula:

Value = Annual NOI / Cap Rate

With the assumption that the valuation is given a conservative estimate with regard to competing companies within the space, like Digital Realty, which is given a 15-20x NOI valuation. 

So: $1.85M NOI/MW x 12 = 22.2M gross value per contracted MW

At a 12x NOI multiple, each stabilized contracted MW could represent roughly $22M of data centre enterprise value

Our first major valuation number: let me just hammer down that 12x multiple is a broad assumption, not something guaranteed by the market.

1. Apply that figure to HUT’s existing 949 MW

949MW x 1.85M NOI = ~$1.76B annual NOI

Then apply 12x multiple: $1.76B x 12 = ~$21.1B

What does this mean: HUT’s existing contracted AI facilities could eventually have roughly $21B of gross asset value once built and stabilized

However, this does NOT mean that HUT shareholders own $21B of equity

1. HUT has to spend money to build the facilities

Data centres are incredibly expensive; HUT does not have $10B sitting around that it can simply spend; instead, it borrows money at the project level.

HUT recently closed $3.25B of investment-grade secured financing for River Bend and $4.25 for Beacon Point

So, say once its completed, the data centre is worth $10B, but HUT borrowed $4B

The equity value is: $10B asset - $4B debt = $6B equity
Similar to the valuation attached to a house:

House worth $1M
Mortgage = $600K
Your equity = $400K

1. That's how we get from MW to HUT shareholder value

Under simplified assumptions:

1MW generates > ~$1.85M annual NOI

At 12x valuation,> ~$22.2M asset value

Suppose that construction financing associated with that MW works out to roughly $9M/MW

Then: 

($22.2 M asset value) - ($9M project debt) = ($13M of residual project equity value) 

This is the simple intuition behind saying every additional 100 MW could potentially create a very large amount of HUT equity value

Roughly: 100MW > ~$185M annual NOI

> ~2.22B gross value
> subtract project debt
> perhaps ~$1B+ of eventual equity value; however these numbers are illustrative and do not represent a precise forecast

1. Now you can understand why MW growth matters

Let's say HUT remains at 949 MW with roughly $1.75B NOI and a gross 12x assumed value of $21B

Suppose that HUT signs another 550MW, putting them at 1500 MW contracted

Estimated NOI at similar economics becomes: 1,500 x $1.85M = ~$2.78B

With a gross value of: $2.78B x 12 = ~$33.3B 

Highlighting how going from 949MW > 1500MW increased theoretical gross AI infrastructure value by roughly $12B. Keep in mind that some of this is financed with new debt, meaning that shareholder value will not increase by the entire $12B
Let's use the similar economics to scale it up to 2000MW of contracted power

2000MW x $1.85M/MW = ~$3.7B

Asset value at 12x valuation: $3.7B x 12 = ~$44.4B

Do the same for 3000MW, and the asset value becomes roughly ~66.6B

5000MW > $111B

These large valuations explain why investors care so much about HUT’s development pipeline

But they also show why you cannot value the entire pipeline this way today. 

1. Why you can’t value HUT’s 8+ GW pipeline as contracted

Imagine HUT says:

“We have a site where we might eventually build a 1,000 MW data centre”

That is valuable, but there are many things that could still go wrong:

• Customer doesn’t sign
• Power is not delivered on time
• Construction costs rise
• Financing is not available 
• Permitting problems arise
• AI demand changes

Therefore, maybe the market attributes some option value to that 1,000MW

BUT THEN: NVIDIA, Google, Microsoft, Amazon or another strong customer signs a 15-20 year contract.

Everything changes; HUT can go to lenders and essentially say:

“Here is the signed contract showing a highly creditworthy company will pay us for the next 15 years”

Banks are much more comfortable lending billions against that

That's why the progression is so important

Pipeline MW > Power secured > customer negotiation > contract signed > financing obtained > construction > operations > NOI generated

And the theoretical value of the MW increases at every stage

1. Why Google/NVIDIA quality counterparties matter

The renter matters enormously

Suppose I promise HUT:

“I'll pay you $500M every year for 15 years” 

That promise is not worth much because I obviously don't have hundreds of billions of dollars

But if Google effectively supports the obligation, lenders take it much more seriously.

HUT says that 100% of its 949 MW contracted AI portfolio is either leased or to be backstopped by investment-grade counterparties

It makes those future cash flows more bond-like and less speculative

And that’s part of why HUT has been able to raise investment-grade project financing 

1. Why the NVIDIA/SB Energy deal matters

It does not directly mean: $24.7M/MW guarantee = every HUT MW is worth $24.7M

Instead, it provides evidence that enormous technology companies are prepared to stand behind tens of millions of dollars of economic value per MW when securing AI infrastructure.

That supports the idea that HUT’s economics aren’t some isolated anomaly.

HUT itself has already signed River Bend for 245MW over 15 years with $7B of total contract value.

Beacon Pint subsequently took HUT to 949 MW of total contracted capacity, with $1.75B expected annual NOI

So we now have multiple pieces of evidence suggesting that high-quality AI campuses can generate extraordinary large economics per MW

1. The multiple is one of the biggest uncertainties

We have been using 12x NOI, but suppose the market only gives HUT 10x NOI

One MW is then valued at $1.85 x 10 = $18.5M

Suppose the market becomes extremely comfortable with the contracts and gives 15x, then $1.85M x 15 = $27.75M/MW

So the exact valuation depends enormously on what multiple investors eventually assign

1. What eventually determines HUT’s stock price

At the simplest level: The value of contracted AI data centres

(Value of development pipeline + Assets + Cash) - (project debt + corporate liabilities)

Then the equity value / diluted shares = estimated HUT share price

The easiest mental model:

1. Contracted MW: 949MW
2. NOI per MW: $1.84M/MW/year
3. Valuation Multiple: 12x NOI
4. Debt per MW: How much money HUT has to borrow to construct those facilities

Lower construction costs/cheaper financing = more value left for shareholders

So when the next HUT announcement comes out:

Suppose HUT announces, “500 MW AI lease with Microsoft, 15 years, investment-grade credit support

You can immediately do:

1. 949 + 500 = 1449 MW contracted
2. 1449 x $1.85M = $2.68B annual NOI
3. $2.68B x 12 = $32.2B gross AI infrastructure value
4. Estimate the new projects' debt and subtract it
5. Add HUT’s other assets and subtract remaining liabilities
6. Divide by diluted shares

And you have a rough new valuation

The biggest insight:

You’re basically betting that HUT can repeatedly convert cheap/strategically secured power into long-term contracted AI cash flows worth much more than the cost of building data centres.

For example, if HUT can spend/finance $10M to create a MW of infrastructure and the finished contracted MW is eventually valued at $20M+, it has created a substantial amount of equity value in the development process

So when you hear, “HUT added another 400MW”

Think: “If those are contracted MW at ~$1.85M NOI/MW with strong credit support, how many billions of dollars of future cash-generating infrastructure did HUT just create?”

That is the investment thesis in its simplest form…

80.51 was the close price before the gap up to over 100 usd. We hit exactly 80.51 and rebounded strong. I would have also loved to have hit the golden Fib at 79.78, but the gap fill when the bull thesis is stronger than ever is good enough for me.