Shares of Hut 8 (NASDAQ:HUT) are surging 35% in midday trading Wednesday. Riot Platforms (NASDAQ:RIOT | RIOT Price Prediction) stock is climbing 13% in tandem, as investors reprice former Bitcoin mining pure-plays as AI data center landlords.
HUT stock changed hands near $109 after opening at $80.51, extending a one-month rally of 67% and a one-year gain of 531%. RIOT shares, last quoted at around $23, are now up 82% year to date.
The shared catalyst is structural. Both companies are pivoting massive power-equipped campuses originally built for Bitcoin (CRYPTO:BTC) mining toward hyperscale AI workloads, and AI tenants pay multiples of mining economics per megawatt. Bitcoin trades near $81,660, well below the January highs, sharpening the appeal of long-duration AI lease revenue.
Beacon Point Lease Triggers Hut 8’s Re-Rating
The primary trigger is Hut 8’s 15-year, 352 MW lease at the Beacon Point AI campus, valued at $9.8 billion in base-term contract value. The agreement with a high-investment-grade tenant triples Hut 8’s contracted AI capacity to 597 MW across two hyperscale campuses on triple-net, take-or-pay terms.
Hut 8 CEO Asher Genoot declared on the call, “Within five months, we have more than doubled our contracted capacity and secured $9.8 billion in incremental base-term contract value.” Hut 8’s total contracted revenue now sits at $16.8 billion, with a development pipeline spanning 8,375 MW.
The company also priced a $3.25 billion senior secured note offering at 6% to fund River Bend construction at 95% loan-to-cost, returning $184 million in equity to the parent. Hut 8’s quarterly results were mixed, with revenue of $71.02 million missing the $79.39 million consensus by 11%, but the long-dated lease backlog dwarfs the quarterly miss in investors’ eyes.
AMD Doubling Down Validates Riot’s Pivot
Riot Platforms stock’s move builds on the company’s April 30 Q1 2026 print, which delivered revenue of $167.22 million, beating the $130.58 million estimate by 28%. The data center segment debuted at $33.15 million, the clearest signal yet that the pivot is generating real recurring revenue.
Advanced Micro Devices (NASDAQ:AMD) exercised an option to double its Rockdale footprint by 25 MW, lifting contracted capacity to 50 MW with options for an additional 150 MW. Riot Platforms CEO Jason Les asserted that Q1 2026 marks “a definitive inflection point for Riot, as we officially transitioned into an active, revenue-generating data center operator.”
Riot Platforms is targeting portfolio net operating income of $1.6 billion to $2.1 billion on full development of its 1.2 GW data center opportunity. Chardan recently initiated coverage with a Buy rating and $27.50 price target, while Piper Sandler raised its target to $23 citing AI/HPC conversion potential.
Why Bitcoin Miners Are Suddenly AI Infrastructure
The thesis driving both names is straightforward: miners already control scarce, energization-ready power, and AI hyperscalers may pay a premium to skip multi-year grid queues. Long-duration leases like Hut 8’s Beacon Point deal swap volatile block reward income for predictable, investment-grade cash flow.
The infrastructure scarcity is real, with Electric Reliability Council of Texas (ERCOT) energization timelines exceeding four years creating barriers to entry that favor incumbents holding approved power. Vertical integration (energy plus compute) is the new differentiator, and AMD’s deepening commitment to Riot Platforms validates that miner-converted facilities can serve enterprise-grade tenants. For broader context on the buildout cycle, see this look at AI infrastructure stocks poised for a 2026 breakout.
What to Watch Into the Close
Hut 8’s earnings call concluded at 8:30 a.m. ET, so the next leg depends on analyst note follow-through and whether gains hold through the closing bell. Insider activity bears watching as well, with Hut 8 Chief Legal Officer selling 10,518 shares at $76.83 on May 4 under a 10b5-1 plan.
For Riot Platforms, attention shifts to May delivery of remaining AMD capacity at Rockdale and progress on the first 168 MW core and shell building at Corsicana. The recent departure of Riot Platforms Chief Data Center Officer Jonathan Gibbs adds execution risk during a critical buildout phase, even as Cantor Fitzgerald maintains an Overweight rating.
Prudent investors should weigh today’s enthusiasm against real execution risk, potential equity dilution from aggressive debt financing, and ongoing Bitcoin price exposure on legacy mining segments. The pivot to AI infrastructure is genuine, yet rallies of this magnitude raise the bar for delivery on every subsequent lease, financing, and milestone. Watch for whether momentum traders defend these levels into Thursday’s session or whether profit-taking caps the move.
Top Gaining Stocks
Top Losing Stocks