The transformation of Bitcoin miners: Hut 8 and the AI data center boom in the heart of Louisiana

Cryptocurrency mining companies are completely rethinking their business models. In recent months, we have witnessed a paradigm shift: the energy and infrastructure built for Bitcoin are now being redirected toward artificial intelligence. Hut 8 has just signed one of the most substantial infrastructure contracts in the industry’s history, signaling a strategic shift that could generate billions of dollars over the next fifteen years.

A $7 Billion Deal at River Bend, Louisiana

In the heart of Louisiana, specifically at River Bend, Hut 8 has signed a 15-year lease agreement with Fluidstack, a company specializing in AI infrastructure. The deal involves an IT capacity of 245 megawatts and represents a total financial commitment of $7 billion, with an annual rent increase of 3%. An interesting option is also included: Fluidstack can lease up to an additional 1000 megawatts as the campus expands, further multiplying Hut 8’s earning potential.

The location in Louisiana’s industrial capital is no coincidence. The region offers abundant and low-cost energy, a crucial factor for high-energy-intensive data center operations.

The Crucial Role of Google: Financial Guarantee and Reliability

What makes this agreement particularly interesting is the financial structure backing it. Google is not just acting as a technology provider: it also serves as a financial guarantor for the entire duration of the contract. If Fluidstack fails to pay the rent, Google would assume the burden. This guarantee drastically reduces the operation’s risk and provides extraordinary credibility to the project.

The financing is primarily structured through bank loans, with institutions covering up to 85% of the initial capital. JPMorgan acts as the main underwriter, supported also by Goldman Sachs. This means Hut 8 will need to invest less of its own capital, while the cash flows generated from the deal will quickly reward shareholders.

Revenue Forecasts and Execution Timeline

According to the company’s estimates, this operation will generate approximately $6.9 billion in total gross revenue over 15 years, equivalent to about $454 million annually. Construction of the data center has already begun: the first data hall is expected to become operational in Q2 2027, followed by additional structures by the end of the year.

CEO Asher Genoot emphasized that Hut 8’s approach favors finding the right partners rather than speed of execution, reflecting a “strength-based and innovation-driven” strategy.

The Market Reacts Positively

Following the announcement of the deal, Hut 8’s shares rose about 20% in pre-market trading. This enthusiasm is not surprising: investors see confirmation of the company’s transition from pure Bitcoin mining to the artificial intelligence sector. In 2024, Hut 8 founded its subsidiary Highrise AI and deployed over 1000 Nvidia H100 GPUs to offer GPU-as-a-Service, demonstrating that this transformation is already underway.

A Model Inspiring the Entire Sector

Hut 8 is not alone in this race toward AI. Core Scientific has struck a 12-year deal worth $3.5 billion with CoreWeave, with estimated annual revenues of around $290 million. Galaxy Digital expanded its Helios AI data center in Texas and signed long-term contracts with CoreWeave for nearly a billion dollars in annual revenue. Even Cipher Mining has entered into high-performance computing agreements with Fluidstack, benefiting like Hut 8 from Google’s support.

This movement is not just diversification: it is a true reinvention. The energy and physical infrastructure built in previous years for Bitcoin mining are being repurposed to power enormously more profitable AI servers. Over the next decade, this sector could generate tens of billions of dollars in revenue, completely transforming the economic nature of cryptocurrency companies.