MV Capital - Hut 8 and IREN Drive Gains in Bitcoin Mining Stocks with Major AI Infrastructure Deals

Hut 8 fully leased its 1 GW Texas AI campus through a second $9.8 billion agreement, while IREN secured $2.8 billion in cloud contracts and raised its revenue targets, boosting shares across the sector amid the ongoing shift toward high-performance computing

Hut 8 Completes Commercialization of Major Texas Facility

Hut 8 has secured a second 15-year lease valued at $9.8 billion for 352 megawatts of IT capacity at its Beacon Point AI data center campus in Nueces County, Texas. This agreement brings the site's total contracted capacity to 704 megawatts with the same investment-grade tenant, fully committing the 1-gigawatt facility.

The deal, executed on terms similar to the initial lease signed earlier this year, raises the campus's base-term contract value to $19.6 billion. With renewal options, the potential value could reach $50.2 billion. Hut 8 plans to develop the second phase around NVIDIA's architecture, with initial operations expected in the second quarter of 2028.

Across its full AI portfolio, Hut 8 now holds 949 megawatts of contracted capacity, including additional projects at River Bend. This positions the company with an aggregate base-term value of $26.6 billion and projected average annual net operating income exceeding $1.75 billion.

“Our tenant at Beacon Point chose to double its footprint at the site, the strongest validation an asset can receive.”Asher Genoot, CEO of Hut 8

IREN Expands AI Cloud Business with New Contracts

IREN announced $2.8 billion in new multi-year cloud services contracts with AI developers, including Microsoft, NVIDIA, Perplexity, Figure AI, and others. The agreements include customer prepayments covering a significant portion of GPU capital expenditures.

Following the deals, IREN increased its year-end 2026 annualized run-rate revenue target for its AI Cloud business to more than $4 billion, with approximately 85% now under contract. The company has scaled rapidly from limited initial capacity to plans for 480 megawatts in 2026 and 1.2 gigawatts targeted for 2027.

“Our vertically integrated AI Cloud platform is scaling at pace.”Daniel Roberts, co-founder and co-CEO of IREN

Sector-Wide Stock Rally Reflects AI Pivot

Shares of Hut 8 and IREN climbed sharply following the announcements, with gains exceeding 10% for both companies in trading. The momentum extended to other firms in the space, including Cipher Digital, CleanSpark, MARA Holdings, and Riot Platforms, many of which rose at least 5-11%.

The advances coincided with broader positive movement in technology shares, including gains in the Nasdaq Composite and the Philadelphia Semiconductor Index. An AI infrastructure growth index tracking related companies also posted gains.

Bitcoin mining companies have increasingly leveraged their power infrastructure and data center expertise to pursue opportunities in artificial intelligence and high-performance computing, as traditional mining economics face challenges. Hut 8 and IREN exemplify this transition through long-term contracts that provide stable revenue streams.

Challenges and Outlook for the Compute Shift

While the announcements highlight strong demand, the sector continues to navigate substantial capital requirements for expansion. Industry estimates suggest significant additional funding will be needed to fully realize AI ambitions across former mining operations.

Investors remain attentive to execution risks, including funding gaps and deployment timelines, as companies balance their cryptocurrency roots with new compute-focused strategies.