Hut 8's Q3: Beacon Point Fully Leased, $26.6 Billion Contract Backlog, a $1.07 Billion Revolver and a Chapter 11 Purchase of Two West Texas Sites

Hut 8 Corp.'s third-quarter results, released Nov. 4 and filed with the Securities and Exchange Commission as Exhibit 99.1 to a Form 8-K, add up the company's shift from bitcoin mining to leasing AI data centers. Most of the big numbers come from deals already announced, chiefly a second Beacon Point lease made public in July. The report also adds three new items: a closed $1.07 billion credit facility, a larger pipeline of power capacity under exclusivity, and agreements to buy two energized West Texas sites out of a Chapter 11 case.

The Backlog: One Tenant, Two Leases, One Campus

In the release, Hut 8 says it "fully commercialized the Beacon Point campus, signing a second 352 MW IT lease with the Phase 1 tenant." According to the company, that lease brings expected aggregate base-term contract value across its AI data center portfolio to about $26.6 billion.

The Phase 2 lease is not new this quarter. Hut 8 announced it on July 20 in a PR Newswire release. That release describes a 15-year, $9.8 billion triple-net lease for 352 MW of IT capacity at Beacon Point in Nueces County, Texas. The tenant is described only as a high-investment-grade company, and the second lease doubles its contracted capacity at the campus to 704 MW. The July release lists a 3.0% annual rent escalator and three five-year renewal options. Hut 8 said those options lift the campus's potential value to $50.2 billion. That figure is a ceiling that assumes every renewal is exercised. It is not contracted revenue.

The Q3 release puts the Phase 2 lease at about $9.8 billion of base-term value and about $655.0 million of expected average annual net operating income, on a triple-net, take-or-pay basis. For the whole Beacon Point campus, the company gives about $19.6 billion of base-term value and about $1.3 billion of annual NOI. The July release said contracted IT capacity across Hut 8's portfolio reached 949 MW, backed by 1,330 MW of utility capacity.

What Is Actually Under Construction

The Q3 release says signing the Phase 2 lease moved 500 MW of Beacon Point utility capacity into what Hut 8 calls Energy Capacity Under Construction. That brings the total to 1,330 MW: 330 MW at the River Bend campus and 1,000 MW at Beacon Point.

Hut 8 energy capacity under construction by campus

Utility capacity Hut 8 reports as under construction following the Beacon Point Phase 2 lease. Source: Hut 8 Form 8-K Exhibit 99.1. DataCenterFeed graphic.

According to the July release, Beacon Point's 1,000 MW of utility capacity is secured under an interconnection agreement with AEP Texas. The second 352 MW building, which the company calls an "AI factory," is designed to NVIDIA's DSX reference architecture and sits on 500 MW of that utility capacity.

The Q3 release gives these initial data hall delivery targets:

River Bend: Q2 2027
Beacon Point Phase 1: Q3 2027
Beacon Point Phase 2: Q2 2028

CEO Asher Genoot said in the release that "construction at both River Bend and Beacon Point remains on track to meet our delivery targets." He added that the company expects the projects "to be funded entirely at the project level, without requiring equity issuance or recourse debt at the parent."

The Poolin Sites: Buying Energized Capacity Out of Bankruptcy

The Q3 report's main new deal is in West Texas. Hut 8 says it entered into agreements to acquire two energized data center sites from affiliates of Poolin Technology Pte. Ltd. through a Chapter 11 sale process, "for consideration of up to $180.0 million." According to the release, the sites carry up to 230 MW of utility capacity at full energization, "subject to final power approvals and infrastructure development." Closing is expected as early as Q4 2026.

The release does not say how the $180.0 million is split. A KuCoin news flash dated Oct. 1, an aggregator item that DataCenterFeed could not check against court filings, gave more detail. It said Hut 8's base bid was $100 million at closing plus up to $80 million in milestone payments tied to AI, HPC or cloud data center leases or transfers. The same item said a New Jersey bankruptcy court on Sept. 30 approved resuming the auction for Poolin's Texas mining facility after a dispute over Hut 8's selection as winning bidder. According to the item, Poolin filed for Chapter 11 on July 22, and the new bid replaced an earlier $140 million agreement. Those details come from that one secondary source. The $180.0 million ceiling matches Hut 8's own release.

The acquisition is part of a larger push for power. Hut 8 says its Energy Capacity Under Exclusivity rose by 1,300 MW to 3,180 MW across multiple regions. In the release, Genoot described the pipeline as "more diversified, with less concentration in any single region."

Financing and Buybacks

Hut 8 says it closed a four-year, $1.07 billion senior secured revolving credit facility. Nothing was borrowed under it as of Sept. 30, and $3.9 million of letters of credit were issued against it after that date. The company says the facility supports its liquidity "as it pursues an investment-grade corporate credit profile."

The company also repurchased $74.7 million of shares during the quarter and another $175.3 million after quarter-end. It says the buybacks were funded with proceeds from bitcoin sales, and it has raised its total repurchase authorization to $1.0 billion.

Third-quarter revenue was $71.1 million, compared with $83.5 million a year earlier, according to the release. The leasing business is still mostly ahead of the company: it generated $1.3 million of Managed Services revenue and $1.4 million of Colocation revenue in the quarter. Hut 8 holds 50% of the King Mountain joint venture, which generated $26.9 million of Colocation revenue including reimbursements. Hut 8 books its $13.5 million share as equity in earnings rather than revenue.

What Happens Next

According to the Q3 release, the Poolin acquisition is expected to close as early as Q4 2026. The company says that is subject to final power approvals, and any added capacity at the two sites also depends on infrastructure development. On construction, the first scheduled milestone is the first River Bend data hall, targeted for Q2 2027. Genoot called it the first of the company's obligations to the tenants, lenders, communities and shareholders it has committed to. Beacon Point Phase 1 is targeted for Q3 2027 and Phase 2 for Q2 2028.