Hut 8: The Half-Owned Mine and the Leased Campus

Galaxy bought a distressed mine and rented the building. Hut 8 is the other shape on the mining map: a half-owned West Texas mine that is still hashing, and a Coastal Bend campus that was leased before it was built. The map had both. This is the page.

What does Hut 8 own at King Mountain?

About half of a joint venture, and the operating role. The February 7, 2023 merger announcement — Hut 8 Mining with U.S. Data Mining Group, doing business as US Bitcoin — put King Mountain, Texas, on the combined company's list. It described 220 megawatts of hosting infrastructure there, owned by the King Mountain joint venture, in which US Bitcoin had a 50 percent membership interest alongside a leading energy partner. The hosting, the release said, was powered by a mix of sources including wind and nuclear.^[1]

Two years later the number was 280, and the ownership sentence had not become a wholly owned mine. Hut 8's operations update for January 2025, datelined Miami on February 4, lists 280 megawatts of capacity under management at King Mountain. A note says the site is owned by a joint venture between Hut 8 and a Fortune 200 renewable energy producer, in which Hut 8 has an approximately 50 percent membership interest.^[2]

The same update is careful about what “100 percent” means. Self-mining operations include 100 percent of operations at King Mountain. Deployed miners, hashrate, and bitcoin produced are also shown net of the partner's 50 percent. In January 2025 the net bitcoin figure was 51.^[2] A page that says Hut 8 owns a 280 megawatt mine is reading the operating line and skipping the ownership note.

The company's releases read for this page say King Mountain, Texas. They do not name the town. The mining map places the site at McCamey in Upton County, citing a Cleanview listing that dates it operational in 2022.^[6] That is the map's placement. It is not a sentence in the merger papers.

What is the $19.6 billion?

A contract value, stated twice and then added. On May 6, 2026, from Miami, Hut 8 said it had commercialized the first phase of Beacon Point in Nueces County through a 15-year lease worth $9.8 billion for 352 megawatts of IT capacity. The tenant was a high-investment-grade company, not named. The lease includes a 3 percent annual base-rent escalator. Three five-year renewal options would raise that one lease's potential value to about $25.1 billion if all of them were exercised.^[3]

On July 20, 2026 the same tenant signed a second lease on substantially the same terms: another 15 years, another $9.8 billion, another 352 megawatts. Contracted IT capacity at the campus doubled to 704 megawatts. Hut 8 said the base-term contract value for the full 1,000 megawatts of utility capacity rose to $19.6 billion. If every renewal option on both leases were exercised, the company said, the potential campus-level value would be $50.2 billion.^[5] The second number is a conditional. It is not a result.

The income figures sit in the same forward-looking block. Hut 8 expects average annual net operating income of $1.31 billion for the full campus upon stabilization, and says expected NOI is not reconciled to GAAP because the company cannot quantify the deductions without a false precision.^[5] A sentence that treats $19.6 billion as money in hand is using the company's contract math as a cash count.

What has not been built?

The lease is not the hall. On July 20, 2026 Hut 8 said site preparation was underway and long-lead equipment had been procured. Initial energization remained on the company's schedule for the first quarter of 2027. The first phase's initial data hall had been expected in the third quarter of 2027. The second phase's initial hall was expected in the second quarter of 2028.^[3][5] “Fully commercialized,” in the July release, means the 1,000 megawatts of utility capacity are contracted. It does not mean the campus is hashing, or cooling a chip.

The financing is real, and it is financing of construction, not proof of delivery. On June 9, 2026 Beacon Point DC LLC, a wholly owned subsidiary, closed $4.25 billion of 6.129 percent senior secured notes due 2042, rated Baa2 by Moody's. The proceeds are intended to finance six data halls totaling 352 megawatts of critical IT capacity on an approximately 521-acre property in Nueces County, and the substation on that property, plus reserves and fees. The notes are non-recourse to the parent. J.P. Morgan was lead bookrunner.^[4] Asher Genoot, the chief executive, called the structure a way to finance construction without recourse debt at the parent. That is a capital-markets fact. It is not an operating campus.

The interconnection is a contract with AEP Texas for 1,000 megawatts of utility capacity, with initial energization expected in the first quarter of 2027. Aaron Bowman, chief executive of the Corpus Christi Regional Economic Development Corporation, welcomed the project as a long-term investment in the Coastal Bend.^[3] A welcome is not a meter reading.

The honest counterweight: the tenant is unnamed, and the mine was the first plan

NVIDIA is not, on these documents, the tenant. Hut 8's May 6 release says NVIDIA is engaged as technology partner, and that the first phase is engineered to NVIDIA's DSX reference architecture. The tenant is described as confidential and high-investment-grade.^[3] The June 9 notes release is more specific about credit and still does not give a name: as of that date the tenant was rated AA− or higher.^[4]A design partner and a lessee are different companies until a document says they are the same one. This page does not say they are.

Beacon Point was not born as an AI campus. The May 6 release says it was originally underwritten on a speed-to-power thesis to serve Hut 8's affiliated customer, American Bitcoin Corp., and was repositioned when power demand and customer requirements changed.^[3] Genoot's line is that operating across applications lets the company redirect an asset. The redirect is the story. A page that calls the campus purpose-built for AI and stops there is describing the second use and hiding the first.

The headquarters never moved. Every release read for this page is datelined Miami. King Mountain is a Texas operating site Hut 8 does not wholly own. Beacon Point is a Texas contract Hut 8 has financed and not yet energized. Both belong on the map. Neither is a Texas company.

Frequently asked questions

Sources

Every datable claim above is sourced below. This is a research and reference article, not financial or legal advice.

1. [1] Hut 8 and US Bitcoin — merger announcement (February 7, 2023, SEC Rule 425 filing): King Mountain, Texas; 220 MW of hosting owned by the King Mountain joint venture, in which US Bitcoin had a 50% membership interest; hosting powered by a mix including wind and nuclear; combined company to be U.S.-domiciled; datelined Toronto and Miami
2. [2] Hut 8 — Operations Update for January 2025 (February 4, 2025, Miami): 280 MW of capacity under management at King Mountain; the site is owned by a joint venture with a Fortune 200 renewable energy producer in which Hut 8 has an approximately 50% membership interest; self-mining operations include 100% of King Mountain, while some miner, hashrate, and bitcoin figures are reported net of the partner's 50%
3. [3] Hut 8 — commercializes first phase of Beacon Point (May 6, 2026, Miami): Nueces County; 15-year, $9.8 billion lease for 352 MW of IT capacity; unnamed high-investment-grade tenant; originally underwritten for American Bitcoin Corp. and repositioned to AI; interconnection agreement with AEP Texas for 1,000 MW; initial energization expected Q1 2027; initial data hall delivery expected Q3 2027; NVIDIA engaged as technology partner for the DSX reference architecture
4. [4] Hut 8 — closes $4.25 billion of 6.129% senior secured notes due 2042 for Beacon Point (June 9, 2026, Miami): issued by Beacon Point DC LLC; rated Baa2 by Moody's; proceeds to finance six data halls totaling 352 MW of critical IT capacity on about 521 acres in Nueces County, plus the substation; tenant rated AA− or higher as of that date; non-recourse to the parent
5. [5] Hut 8 — fully commercializes Beacon Point (July 20, 2026, Miami): second 15-year, $9.8 billion lease for 352 MW of IT capacity to the same unnamed tenant, doubling contracted IT to 704 MW; campus base-term contract value $19.6 billion; renewal options would raise potential value to $50.2 billion if exercised; Phase 2 hall delivery expected Q2 2028; initial energization still scheduled for Q1 2027; site preparation underway
6. [6] Cleanview — Hut 8 King Mountain, Upton County (280 MW, operational 2022). The company's own releases say King Mountain, Texas, and do not name the town in the documents read for this page.