Hut 8 price target doubled on major AI data center deals

Benchmark doubled Hut 8’s price target to $165, citing $16.8B in AI data center leases and strong growth prospects. The new target implies a 65% upside as Hut 8 pivots to AI infrastructure.

Benchmark has nearly doubled its price target for Hut 8, raising it to $165 from $85 while maintaining a buy rating. This upgrade comes as Hut 8 shifts its focus from Bitcoin mining to AI-driven data center infrastructure. The decision is fueled by the commercialization of Hut 8’s Beacon Point AI data center campus and the signing of two 15-year, triple-net, take-or-pay leases in River Bend, Louisiana, and Beacon Point, Texas. These leases cover 597 megawatts of IT capacity and are valued at $16.8 billion in base-term lease value. If renewal options are exercised, the total contract value could reach $42.8 billion. Hut 8 has secured between $4.25 billion and $7.5 billion in project financing for these developments, with its broader pipeline now exceeding 9 gigawatts. Despite a recent 30% drop in share price, Hut 8’s operational momentum remains strong, with shares up 116% year-to-date. Benchmark’s new target implies about 65% upside from current levels, reflecting confidence in Hut 8’s rapid execution and substantial, contractually guaranteed revenue streams from its AI data center strategy.