Rittenhouse Research
AI Infrastructure, Data Centers, Neoclouds, Software & Fintech Research
Hut 8's new Beacon Point lease ranks among the best ever signed by any data center developer. Per Hut 8, the second 352 MW lease doubles a high-investment-grade tenant's capacity to 704 MW and brings 15-year base-term contract value to $19.6B. The triple-net structure means a 100% NOI margin, about $1.86M of average annual NOI per MW with a 3% escalator, against $9-11M per MW of build cost, roughly a 15% yield on cost. x.comÂ
Hut 8 landed an amazing data-center lease: 15 years directly with a high-investment-grade hyperscaler at a 15% unlevered yield on cost, hard to beat. A critic notes the $9.8B contract annualizes to about $653M, starts in Q3 2027 and may need GPU replacements over its optional 30-year term, but Hut 8 is not responsible for buying the GPUs and tenants like Amazon, Microsoft, Google or Meta are unlikely to go bankrupt. Per Prager, the Fluidstack deal was better than TeraWulf's. x.com x.com x.comÂ
Hut 8 is turning from a bitcoin miner into an AI power company, a shift mainstream financial media is missing. Its Phase 2 Beacon Point contract is a 15-year triple-net lease with a top investment-grade tenant, adding 352 MW of IT capacity for a 704 MW campus, worth $9.8 billion in total with about $655 million in average annual net operating income and no capex burden on Hut 8. Benchmark doubled its price target to $165, and Lucid Capital has a $226 target. x.comÂ
Hut 8 is turning from a bitcoin miner into an AI data center operator with long-term contracted revenue, built on controlling low-cost power and developing its own facilities. On May 6 it signed a 15-year, 352 MW Beacon Point lease with an investment-grade tenant, worth $9.8 billion take-or-pay and up to $25.1 billion with renewals. That lifts contracted AI capacity to 597 MW and base contract value to about $16.8 billion across River Bend and Beacon Point, with gigawatt-scale expansion planned. … Show more
Hut 8 is following a dangerous precedent of self-leveraging data-center buildouts by packaging tenant leases into asset-backed securities, as Blackstone's QTS began doing. Construction debt builds a data center, its 15-year lease backs debt issuance, and the proceeds fund distributions and equity for more projects, so $10B of equity can snowball into $180B of projects. The same cycle in late-1990s manufactured homes contributed to the mortgage crisis. x.comÂ
Anthropic's customer spending and compute buildout show AI monetizing at scale, a bullish read-through for Nvidia, Broadcom, Alphabet, Amazon, Microsoft, Nebius, CoreWeave and Hut 8. Its IPO filing reports H1 revenue up 14-fold to $16.3B, 11,900+ customers spending $100K+ annually and 1,900+ spending $1M+, alongside $9B in H1 infrastructure spending and about $430B in future compute commitments. x.comÂ
Nebius's new financing addresses funding fears around its compute buildout. Its $3.5B Citi facility funds data centers and GPUs, and over $40B of long-term contracts with investment-grade customers offers more borrowing capacity. Bank of America says funding is covered through 2026 and reiterates Buy and a $310 target, expecting the shares to double; it estimates about $18B of new capital for 1 GW in 2027, potentially less with customer prepayments. x.comÂ
Hut 8 has signed away nearly 1GW of power and land in colocation deals for pennies on the dollar, making it a stock worth shorting for anyone willing to short at all. Colocation plays are off-limits until rates improve. x.comÂ
Neoclouds such as Hut 8 are the play on an AI capacity shortage, as big AI companies and labs race to lock in capacity years ahead. AI cloud backlogs have passed $150B, and one provider said it could sell out its 2027 capacity at today's terms. Hut 8 is a bitcoin miner turning its power infrastructure into AI data centers, and its 1GW Texas campus is now fully leased. x.comÂ
Owning Nebius's Independence campus could underpin years of US growth by letting it coordinate power, cooling and GPU upgrades. Its four-building plan targets up to 1.2 GW over five to seven years, but ownership puts construction and financing risk on Nebius; returns require power, equipment and customers to arrive together. Utility supply, the off-site Blue Valley project and a possible on-site generation option are distinct plans, not operating compute. Current active IT MW was not verified. … Show more
Hut 8 gains long-term AI infrastructure exposure backed by Nvidia. Per the WSJ, relayed by @StockMKTNewz, Anthropic's $35B compute deal with Lambda will run in a data center Hut 8 is building in Nueces County, Texas, where Nvidia itself holds the lease. Neoclouds remain very attractive at current prices. x.com x.comÂ
Hardware suppliers and VC keep financing cash-hungry labs and neoclouds, making compute rental prices at CoreWeave, Nebius and IREN look artificially supported. Lab revenue growth is finally plateauing at 800% year over year after roughly tenfold equity gains across the stack over the last decade. The buildout is also crowding out the economy's appetite for debt. x.com x.com x.com x.com x.com x.comÂ
