Hut 8 Corp (NASDAQ: HUT) (TSE: HUT) has reached a deal to sell a 310-megawatt portfolio of natural gas-fired power plants in Ontario to TransAlta Corporation (NYSE: TAC) (TSE: TA).
The transaction, announced on Monday, includes four facilities owned and operated by Far North Power Corp., a joint entity formed by Hut 8 and Macquarie Equipment Finance Ltd., a subsidiary of Macquarie Group Limited.
The sale concludes a multi-phase effort by Hut 8 to stabilize and strengthen the plants after acquiring them out of bankruptcy. The company implemented operational and commercial improvements to make the assets revenue-generating once more. Earlier this year, Far North secured five-year capacity contracts for the full 310-megawatt portfolio through Ontario’s IESO Medium-Term 2 auction. These long-term contracts enhance cash-flow stability while allowing the plants to maintain potential merchant energy revenue.
Hut 8 plans to focus on large-scale digital infrastructure projects while keeping a strategic interest in power generation. The company said redeploying capital from the gas plants will allow it to invest in higher-return opportunities. Hut 8’s chief financial officer, Sean Glennan, explained that the plants are attractive, but not central to the company’s current growth strategy. He added that the sale demonstrates Hut 8’s ability to optimize and monetize complex power assets.
“Our power-native team executed a disciplined program to strengthen the four natural-gas power plants comprising the portfolio, enhancing their operational and commercial footing,” said Asher Genoot, CEO of Hut 8.
TransAlta, a major Ontario power generator, will now own the contracted facilities. John Kousinioris, TransAlta’s president and CEO, noted that the acquisition strengthens the company’s Ontario presence with reliable, complementary assets.
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The deal shows a growing focus on grid reliability as Ontario’s population and electrification demands rise. Hut 8 retains its strategic vision of building a multi-gigawatt pipeline of energy-first digital infrastructure across North America. Meanwhile, TransAlta gains immediate operational assets and opportunities for further value creation.
Industry observers see the transaction as a win-win. Hut 8 unlocks capital for development projects, while TransAlta strengthens its contracted generation footprint in a key Canadian market. In addition, both companies position themselves to benefit from Ontario’s evolving energy landscape and long-term demand for firm power.
Over the past two quarters, Hut 8 has made strategic choices that display a shift in its long-term priorities. In the earlier quarter, the company strengthened its Bitcoin reserves and secured five-year capacity contracts for its 310 MW Ontario Far North power portfolio.
Meanwhile, it advanced development of its in-house designed 205 MW Vega AI data center, preparing for high-performance computing and GPU workloads. The compute segment, including Bitcoin mining, generated the majority of the company’s revenue.
In the most recent quarter, Hut 8 moved aggressively on its development pipeline, advancing 1,530 MW from exclusivity into active development, reinforcing its “power-first” infrastructure approach. It also emphasized a long growth runway, citing a multi-gigawatt project pipeline.
