Benchmark Nearly Doubles Hut 8 Price Target to $165 on AI Data Center Growth

Wall Street firm Benchmark has raised its price target on bitcoin miner Hut 8 to $165 from $85, pointing to the company’s growing footprint in AI data center infrastructure as the main driver behind the increase.

Beacon Point Project Anchors New Valuation

Analyst Mark Palmer kept his buy rating on the stock, noting the new target reflects roughly 65% upside from Hut 8’s current trading price near $100. He said the Beacon Point campus in Texas, the larger of Hut 8’s two commercialized hyperscale projects, is central to the company’s shift toward becoming what he called a power-first data center REIT with an active development pipeline.

Contracted Revenue Reaches Billions

Hut 8 has signed two 15-year, triple net leases covering 597 megawatts of IT capacity across its River Bend, Louisiana, and Beacon Point, Texas, sites. Palmer estimated these deals represent $16.8 billion in contracted base-term value, potentially rising to $42.8 billion if renewal options are exercised. The Beacon Point project’s first phase alone accounts for $9.8 billion in contract value and about $655 million in average annual operating income.

Financing and Future Pipeline

Hut 8 recently secured $4.25 billion in project financing for Beacon Point, following $3.25 billion raised earlier for River Bend. Beyond current projects, the company holds a development pipeline exceeding 9 gigawatts, which Benchmark says supports long term growth even as bitcoin-related accounting effects may cloud near term earnings.