Bitcoin News Today: Hut 8 Secures $7B AI Infrastructure Pact, Bolstered by Google and JPMorgan Financing

Bitcoin miner Hut 8 has secured a major $7 billion deal to develop up to 2.3 gigawatts of AI data center infrastructure over the next decade. The agreement, spanning a 15-year lease for 245 megawatts of IT capacity, is anchored by infrastructure provider Fluidstack and backed by Alphabet subsidiary Google. The deal marks a significant shift in the company's strategy from bitcoin mining to AI infrastructure, as hyperscalers intensify their demand for power-first compute capacity.

The River Bend campus in Louisiana will host the initial phase of the project, with the first data hall expected to be completed by early 2027. Construction is already underway, supported by institutional financing from JPMorgan Chase and Goldman Sachs, which will cover up to 85% of the project costs. Google has also agreed to provide a financial backstop, covering lease payments and obligations during the base term, reducing risk for Hut 8 and de-risking the project's execution.

The partnership includes three tranches, with options for expansion at River Bend and beyond. Fluidstack will operate high-performance compute clusters for AI firm Anthropic, which has a right of first offer to expand capacity at the site. The full agreement could eventually deliver up to 2,295 megawatts of AI data center infrastructure, with Anthropic and Fluidstack playing central roles in development and deployment according to industry sources.

Strategic Shift Toward AI Infrastructure

Hut 8's move into AI infrastructure aligns with a broader industry trend of repurposing cryptocurrency mining assets for AI hosting. The company has positioned itself as an energy infrastructure platform, leveraging its access to high-voltage power and cooling systems previously used for bitcoin mining. This pivot is particularly relevant as AI developers increasingly rely on power-intensive hardware such as Nvidia graphics processing units.

The deal also deepens Hut 8's involvement in the AI sector, which began in late 2024 with the launch of its GPU-as-a-Service offering through the Highrise AI subsidiary. The River Bend project is part of a larger development pipeline that includes 8,500 megawatts of potential capacity across 19 sites in the United States and Canada.

Financial and Operational Implications

The lease is expected to generate $6.9 billion in cumulative net operating income over the base 15-year term, averaging $454 million annually. The project includes a 3% annual rent escalator and three optional five-year renewal periods, which could lift the total contract value to approximately $17.7 billion.

At peak construction, the project will employ around 1,000 workers, with an estimated 265 direct and indirect jobs created once operations are fully underway. Louisiana state and local stakeholders are also collaborating to secure utility capacity for the site.

Market Reaction and Investor Sentiment

Hut 8's shares surged more than 25% in pre-market trading following the announcement, reflecting investor optimism about the long-term revenue potential. The stock has gained approximately 75% year-to-date amid growing confidence in the company's AI-focused strategy.

Industry analysts have highlighted the deal's significance, noting that it represents one of the strongest AI/HPC colocation agreements to date. The inclusion of a Google financial backstop and institutional financing has further boosted confidence in the project's viability.

What This Means for Investors

The partnership with Fluidstack and Anthropic positions Hut 8 as a key player in the expanding AI infrastructure sector. By aligning power, design, and compute deployment into an integrated platform, the company is addressing a core bottleneck in scaling AI technologies—access to reliable, low-cost power and infrastructure according to industry experts.

For investors, the deal offers a clear path to long-duration revenue and operating income, while reducing capital expenditure through third-party financing. The potential for expansion, including up to 1,050 megawatts of additional capacity at other Hut 8 sites, adds further upside to the project.

With the first phase of the project on track to be completed by mid-2027 and additional halls coming online soon after, Hut 8 is demonstrating its ability to execute large-scale infrastructure projects in a high-growth sector. The deal could serve as a blueprint for future partnerships as demand for AI compute continues to rise.