Hut 8 (HUT) Transaction presentation summary

Campus overview

• Beacon Point campus in Nueces County, Texas, spans 525 acres with 1,000 MW utility capacity secured under an interconnection agreement with AEP Texas.

• The site features resilient, low-latency national fiber connectivity and a closed-loop cooling system, supporting high-performance computing (HPC) workloads.

• Four diverse campus entrances and proximity to six local power generation facilities (~4.6 GW) enable significant expansion potential.

• Phase 1 delivery is targeted for Q3 2027, with Phase 2 expected in Q2 2028.

Lease structure and financials

• Two 15-year triple net (NNN) leases, each for 352 MW IT capacity, total $19.6B in base-term value, with three 5-year extension options per lease.

• Exercising all renewal options increases total potential lease value to over $50B, with up to 30 years per lease.

• Projected average annual NOI contribution is $1.3B for the base term, rising to $1.67B if all options are exercised.

• Construction cost per MW is $1.86M, with annual base rent escalators of 3%.

Strategic approach and value creation

• Power-first, first-principles approach enabled transition from ASIC compute to AI use case, maximizing asset value and lowering cost of capital.

• First-principles engineering increased Phase 1 capacity by 57%, from 224 MW to 352 MW, aligning with NVIDIA DSX reference architecture.

• Commercialization focused on securing high investment-grade counterparties and long-term, contracted cash flows.