Should data center demand continue to grow at breakneck speed in the years to come, a significant shortage of power relative to data center needs is all but inevitable. While this doesn't bode well for artificial intelligence (AI) companies fighting over precious capacity—or for the nation's power grid overall—it could be a boon for those on the other side of the bargaining table. If the value of data center capacity grows amid a scarcity of power, cryptocurrency-turned-AI names like Hut 8 Corp. (NASDAQ: HUT) may win.
Like many other crypto mining firms, Hut 8 has utilized its preexisting infrastructure to capture a vital lead in the race to meet data center power demands. Unlike some other firms in the space, though, this one has so far also retained much of its Bitcoin mining business. With a major partnership with AI giant Anthropic on the books, the potential for additional deals to supply power to come, and an impressive balance sheet buoyed by Bitcoin holdings and mining, Hut 8 could stand out in 2026 and beyond, thanks to its dual focus.
Anthropic Deal Catapulted Hut 8 Into the Data Center Conversation
In mid-December 2025, Hut 8 revealed a transformative partnership with Anthropic, a top AI lab, as well as cloud infrastructure provider Fluidstack. First, Hut 8 has agreed to a 15-year lease with Fluidstack for 245 megawatts (MW) of capacity in Louisiana, a deal valued at $7 billion. The firm has also agreed to develop and deliver up to 2,295 MW of data center infrastructure for Anthropic. In total, the deal could be worth up to $18 billion, depending on contingencies.
Anthropic is one of the leading names in AI today, and a major partnership like this one elevates Hut 8's profile in the data center space automatically. Beyond that, though, the deal is absolutely massive for a company with a market capitalization of under $7 billion as of early 2026. However, generating revenue from this deal likely depends on sustained demand, meaning the excitement surrounding data centers needs to persist for many years.
New Infrastructure and Deals Could Follow As Well
In Hut 8's latest earnings report, for the third quarter of 2025, management revealed plans to rapidly and dramatically expand the company's infrastructure. Hut 8 has more than 8.6 gigawatts (GW) in development across four site expansions in the United States, the result of which will be a significant increase in platform scale for AI and high-performance computing needs.
To be sure, as of that earnings update, it was not apparent that Hut 8 had clients lined up to sign contracts for all or part of that capacity, so there is certainly a degree of risk in engaging in such a rapid and significant expansion. For one thing, financing these projects upfront without preexisting contracts could saddle Hut 8 with additional debt. Further, though, it will have to carefully plan and allocate resources to ensure multiple simultaneous buildouts stay on schedule.
Hut 8’s Balance Sheet and Bitcoin Reserves Support Its Transition
Even aside from the massive Anthropic/Fluidstack deal, Hut 8 is in a favorable position to support its continued expansion into the data center industry. For instance, it closed the third quarter with nearly 13,700 Bitcoins in its reserves—worth about $1.6 billion at the time and still $1.2 billion in late January 2025 after Bitcoin's price has dropped.
With only a few hundred million dollars in debt prior to launching the infrastructure buildout, Hut 8 has ample room to finance. Thanks to agreements with major players like Goldman Sachs and JPMorgan, the company will likely not run into any major hurdles in doing so, either.
This is one reason Bitcoin mining remains key to Hut 8, even as the firm's primary focus may shift elsewhere. Revenue from mining operations may be able to offset some of the expenses associated with growing infrastructure to meet AI needs. Bitcoin also helps to ensure a diversified approach in case of a data center demand collapse.
It's perhaps no wonder, then, that Hut 8 shares have more than tripled in the last year. Still, even with modest downside projected in the near-term, analysts are strongly bullish overall—the stock has 17 Buy ratings and just a single Hold over the last year.
Where Should You Invest $1,000 Right Now?
Before you make your next trade, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis.
Our team has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and none of the big name stocks were on the list.
They believe these five stocks are the five best companies for investors to buy now...
The article "Hut 8’s Data Center Pivot: The Challenge Everyone’s Underestimating" first appeared on MarketBeat.
