Companies including Hut 8, Core Scientific ( CORZ ), Hive Digital ( HIVE ) and Bit Digital ( BTBT ) have reallocated parts of their power and infrastructure assets to support AI workloads, betting that long-term contracts with hyperscale customers will generate stable, higher-margin revenue than incremental increases.

Hit 8 has signed two 15-year, triple-net, take-or-pay leases covering 597 megawatts of IT capacity at its Riverbend, Louisiana, and Beacon Point, Texas campuses. According to Palmer, the agreements represent a contracted base-term lease value of $16.8 billion and could increase to $42.8 billion if tenants exercise renewal options.

Palmer said the Beacon Point contract was the primary driver behind the higher price. The broker estimated that the first phase of the project alone has a base term contract value of $9.8 billion and an average annual net operating income of approximately $655 million.

He also pointed to Hit 8’s financing strategy, noting that the company recently completed a $4.25 billion investment-grade project financing for Beacon Point after raising $3.25 billion for Riverbend. The deals validate management’s strategy to reduce its cost of capital by converting development assets into long-term contracted cash flows.

In addition to its current projects, the report highlighted Hit 8’s development pipeline, which exceeds 9 GW across all projects under specification, development, construction and management, giving it a long runway for future growth.