The “cryptominer” label is becoming a relic of the past for Hut 8 (HUT).
In a move that signals a massive strategic shift, Hut 8 announced a $7 billion deal to build a data center complex in Louisiana for Anthropic (ANTH.PVT). The move effectively trades bitcoin (BTC-USD) volatility for the high-margin stability of AI infrastructure.
“We believe the value of energy will continue to rise, so we had to be patient and figure out what was a fair deal that added value to our customers, but generated a strong return for our shareholders,” Hut 8 CEO Asher Genoot said in Yahoo Finance’s opening bid.
The market is rewarding the transformation. Shares of the energy infrastructure company rose about 20% on Wednesday following the announcement, as investors celebrated its potential to land blue-chip partners in a crowded field.
Beyond the one-day pop, the stock has stood out in the pivot from mining to AI, driven by the company’s deep energy assets and its strategic partnership with American Bitcoin (ABTC), a Trump family company in which Hut 8 has a 60% stake. So far this year, Hut 8 shares are up 90%.
The linchpin of the Louisiana project is a financial guarantee from Google (GOOG, GOOGL), which guarantees 15-year lease payments if Fluidstack, an AI cloud infrastructure provider, cannot meet them. The agreement secures 245 megawatts (MW) of capacity, with the possibility of expanding up to 2,300 MW within that period, a measure that could increase the total value of the lease to $17.7 billion.
“We’re very excited because it’s the first domino to fall,” Genoot said. “If we are able to continue to expand and develop that full strategic partnership at 2,300 MW, we will see many growth advantages for the company and the agreement as a whole.”
Solvency was the key. Genoot noted that without Google’s participation, it would have been nearly impossible to obtain financing for projects from titans like JPMorgan (JPM) and Goldman Sachs (GS) at favorable rates.
He added that Google has a “strong core business,” including diversified cash flows from Search, YouTube and cloud services, making the tech giant’s promise the ultimate security for a 15-year infrastructure play.
However, getting the money is only half the battle. Competitors have seen their stocks hit due to construction delays. Genoot says Hut 8 has eliminated execution risk, in part by issuing a “conservative delivery schedule” and using local labor.
The company has turned to established industry partners, including Jacobs Engineering for design and local contractors such as Cajun Electric for electrical services. By scheduling delivery of the first data room for the second quarter of 2027, Genoot said the company is avoiding the “crisis” of unrealistic deadlines that has plagued the sector.