Hut 8’s Texas Power Site Lands Inside Anthropic’s $35B AI Expansion

Hut 8’s Texas campus has secured two long-term leases valued at $19.6 billion, a figure more than 260 times the company’s latest quarterly revenue, highlighting the growing value of power and data-center infrastructure as AI firms compete for computing capacity.

Hut 8, traditionally known for developing infrastructure for Bitcoin mining, is now set to play a role in powering AI company Anthropic through its Beacon Point campus in Nueces County, Texas.

Anthropic has agreed to spend $35 billion to purchase computing capacity from Lambda, an AI cloud provider backed by Nvidia, according to a Wall Street Journal report published late Monday.

Part of that computing capacity will be hosted at Hut 8’s Beacon Point facility. Nvidia holds the lease for the site, Lambda is expected to deploy Nvidia chips there, and Anthropic will purchase the computing capacity generated at the facility.

Hut 8 shares initially surged after the report emerged Monday night but had given back most of those gains, trading only slightly higher in premarket activity.

The company had previously disclosed two 15-year agreements at Beacon Point covering 704 megawatts of IT capacity, without identifying the tenant. Together, the leases represent $19.6 billion in contracted value over their initial terms.

Beacon Point spans 525 acres and has access to as much as 1 gigawatt of power, along with an existing connection to the electricity grid.

CoinDesk has contacted Hut 8 seeking clarification on what portion of the 704 megawatts under lease is connected to Lambda and Anthropic, and whether Nvidia is the unnamed tenant associated with the two previously disclosed agreements.

Why Bitcoin Miners Are Becoming AI Infrastructure Partners

AI companies require enormous quantities of electricity, while building new grid connections capable of supporting hundreds of megawatts can take years. Bitcoin miners already operate large-scale facilities designed around inexpensive electricity and established grid connections, making their infrastructure attractive to AI companies seeking to rapidly expand data-center capacity.

Hut 8, TeraWulf, IREN and Bitdeer are among the miners that spent years acquiring power and developing facilities for Bitcoin mining. As Bitcoin mining economics weakened, many of these companies began redirecting capital toward AI and high-performance computing. CoinDesk reported in March that publicly traded miners had already secured more than $70 billion in AI and HPC contracts.

TeraWulf agreed in July to provide Anthropic with approximately 401 megawatts under a long-term deal at a former industrial facility in Kentucky. The company is also converting portions of its Lake Mariner mining site in New York for AI-related operations.

Bitdeer signed a 16-year agreement in August worth approximately $4.7 billion to lease 121 megawatts at its Tydal campus in Norway for Nvidia-powered computing. The company continued its Bitcoin mining operations as well, producing 1,190 BTC in July.

Microsoft also agreed last year to a five-year contract valued at about $9.7 billion for AI capacity from IREN’s Texas data centers. The arrangement uses roughly 200 megawatts of capacity. IREN’s AI cloud revenue subsequently climbed to $70.5 million in the latest quarter, while its Bitcoin mining revenue declined.

Hut 8 generated $74.93 million in quarterly revenue in June, representing an 81% increase from the same period a year earlier. Its two Beacon Point leases cover 704 megawatts and have a combined contracted value of $19.6 billion over their initial 15-year terms.

Once the campus is fully operational, Hut 8 expects Beacon Point to produce average annual operating income of approximately $1.31 billion.

About The Author

ctleditor

See author's posts