Hut 8 Inks $7B AI Compute Lease with Fluidstack

Hut 8 has made a significant shift toward AI infrastructure, securing a $7 billion deal with Fluidstack for a 245 MW IT lease in Louisiana. Google, Entergy, and J.P. Morgan are some of the key partners involved.

Hut 8 Corp., a prominent energy infrastructure platform, announced a $7 billion lease agreement with Fluidstack for AI compute resources at its River Bend data center in Louisiana.

Hut 8’s strategic pivot from Bitcoin mining to AI infrastructure highlights a significant market evolution, with expectations of enhanced revenue streams and diversification.

The energy platform, Hut 8 Corp. has signed a 15-year, $7 billion lease with Fluidstack, focusing on AI infrastructure. This development marks a transformative phase, moving away from Bitcoin mining.

Key partners in this initiative include Google, providing financial backing, and Entergy as the power partner. Project underwriting is supported by J.P. Morgan and Goldman Sachs. Asher Genoot, CEO of Hut 8, emphasized disciplined execution:

The shift positions Hut 8 prominently within the AI infrastructure sector. This move could lead to increased investment and market influence, potentially reshaping its asset portfolio and operations.

Financial implications suggest targeted project funding up to 85% loan-to-cost, backed by large institutions. The deal marks Hut 8’s transition in focus, hinting at a broader industry trend toward AI over traditional crypto mining activities.

Though immediate regulatory reactions are absent, the initiative could lead to regulatory scrutiny. Technological adaptability will be crucial as Hut 8 navigates this sector, leveraging historical trends in digital infrastructure.