Hut 8 has closed a historic 15-year lease agreement valued at $7 billion to expand its technological capacity in Louisiana. The Bitcoin mining company is diversifying its operations by partnering with Fluidstack and Google to develop massive artificial intelligence infrastructure to meet the demand of hyperscalers.
The company announced on Wednesday that the deal will deliver 245 megawatts of capacity at its River Bend campus. In this strategic operation, Google will act as a financial backstop guaranteeing lease payments and related obligations during the base term of the contract, significantly mitigating counterparty risk if Fluidstack is unable to cover operating costs. Asher Genoot, CEO of Hut 8, highlighted that this project reflects the strength of their innovation-driven development model validated by world-class partners.
On the other hand, initial construction is already underway, with the first data hall scheduled to be completed and commissioned in the second quarter of 2027. The project will be financed through loans directly tied to the asset, and major banks are expected to cover most of the costs of construction, thereby reducing the need for upfront capital from the miner and ensuring long-term financial viability.
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This transition marks a turning point in the industry, where the energy capacity and existing infrastructure of miners are being revalued for new purposes. Noah Wintroub, Global Chairman of Investment Banking at JPMorgan Chase, noted that River Bend demonstrates how institutional discipline translates into real and enduring value when combined with innovative thinking, validating Hut 8’s strategic pivot toward high-demand computational sectors beyond cryptocurrencies.
Likewise, this move aligns with a growing trend among crypto-native firms seeking to capitalize on the boom in artificial intelligence infrastructure. Similar cases include Core Scientific and Galaxy Digital, which have recently closed multi-billion dollar contracts to lease their power and space to AI cloud providers, ensuring stable and diversified revenue streams against the inherent volatility of the digital asset market.
Finally, the agreement deepens Hut 8’s involvement in the high-performance computing sector, consolidating its strategy initiated in 2024. With the backing of tech and financial giants, the company positions itself to lead a hybrid future, where digital mining and advanced data processing coexist, offering solid prospects for growth and stability for its investors in the coming years.
