Hut 8 Corp. has agreed to sell its 310‑megawatt natural‑gas portfolio, comprising four plants in Ontario, to TransAlta Corporation for $95 million, with the transaction expected to close in early first quarter of 2026. The deal transfers ownership of the plants, which are operated under Far North Power Corp., a joint venture between Hut 8 and Macquarie Equipment Finance Ltd., that was acquired from Validus Power’s bankruptcy in late 2023.
The portfolio’s four gas‑fired units were upgraded by Hut 8 to secure investment‑grade, five‑year capacity contracts through the Ontario IESO Medium‑Term 2 auction, providing a stable revenue stream that TransAlta will add to its existing generation mix. The $95 million price equates to roughly $306 per kilowatt, a valuation that reflects the assets’ long‑term contract backing and the strategic fit for TransAlta’s Ontario expansion plans.
For Hut 8, the divestiture frees capital that the company will deploy into its core digital‑infrastructure and high‑performance‑computing initiatives. CEO Asher Genoot noted that the sale “creates the appropriate conditions to crystallize the value of the portfolio for our shareholders” and signals a clear shift away from legacy power generation toward high‑margin AI and HPC projects. CFO Sean Glennan emphasized that the proceeds will accelerate the company’s high‑return pipeline and demonstrate its ability to monetize complex power assets.
TransAlta benefits from the acquisition by adding a dispatchable, contracted asset that is expected to contribute about $30 million of average adjusted EBITDA annually. President and CEO John Kousinioris highlighted that the purchase “adds to our reliable and increasingly diversified portfolio” and strengthens the company’s competitive position in Ontario, where long‑term capacity contracts are a key driver of grid reliability and profitability.
The transaction is accretive to Hut 8’s free cash flow and positions the company to invest in data‑center and AI infrastructure, while for TransAlta it delivers immediate cash‑flow benefits and a foothold in a high‑growth market. Market reaction reflected these fundamentals: Hut 8’s shares rose on the news, driven by investor confidence in the company’s strategic pivot, and TransAlta’s shares moved in line with the expectation of a stable, contract‑backed revenue stream.
Management quotes underscore the strategic intent: Genoot said the sale “enabled the award of investment‑grade, long‑term capacity contracts across all four sites,” and Kousinioris noted the acquisition “provides a long‑term, contracted power asset that will support our existing generation portfolio and enhance our competitive position in the Ontario market.”
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