Hut 8’s shares surged over 14% at one point during intraday trading, after signing a $9.8 billion lease for an AI data center, driving a rebound in the computing power sector.

Bitcoin mining and AI infrastructure firm Hut 8’s stock rose on Monday, surging more than 14% at one point during the session, after the company announced a 15-year AI data center lease agreement worth $9.8 billion with an investment-grade tenant. The agreement covers the second phase of construction of Hut 8’s Beacon Point AI data center campus in Texas, U.S., adding 352MW of AI computing capacity based on NVIDIA’s data center architecture, bringing the campus’s total leased capacity to 704MW and enabling full commercialization of its 1GW power capacity. Hut 8 said the lease lifts the base contract value of the Beacon Point campus’s initial leasing period to $19.6 billion. Boosted by the news, high-performance computing (HPC)-related stocks rose in tandem: IREN gained around 15% intraday, Cipher Mining rose 11%, TeraWulf climbed 6.4%, and Bitcoin mining ETF (WGMI) jumped 9.3%. Earlier, the AI infrastructure sector had come under pressure amid market concerns over the sustainability of data center investment growth. Recent developments including Chinese firms launching open-source AI models with lower computing power requirements and Meta’s consideration of rolling out an AI computing cloud service have sparked market worries about future computing power oversupply. Hut 8’s long-term lease is viewed by the market as a key signal of sustained growth in AI computing demand, driving a rebound in sentiment for the related sector.