Third Point bets on Hut 8 AI infrastructure pivot
Third Point acquired 869,563 shares in Hut 8 Corp. in Q1FY26, backing its shift to AI infrastructure. Hut 8 missed Q1 estimates but secured $16.8 billion in contracted lease revenue and a $9.8 billion base-term deal. The company priced a $4.25 billion notes offering for its Texas data center, while analysts raised price targets to an average of $120.
*this image is generated using AI for illustrative purposes only.
Billionaire investor Daniel Loeb's Third Point expanded its AI infrastructure portfolio by acquiring 869,563 shares in Hut 8 Corp. during the first quarter of FY26. The investment follows Hut 8's strategic pivot from bitcoin mining to high-performance computing and AI infrastructure. This stake increase underscores growing institutional confidence in Hut 8's transition towards AI-driven data center operations.
Hut 8 reported a first-quarter loss of $1.98 per share, missing the consensus estimate of a 17-cent loss. Revenue for the quarter stood at $71.01 million, falling short of the $81.27 million consensus estimate. Despite the earnings miss, the company highlighted significant progress in its AI infrastructure initiatives, securing $16.8 billion in contracted lease revenue across two hyperscale AI campuses. These agreements are backed by triple-net, take-or-pay contracts with investment-grade counterparties.
Strategic Contracts and Financing
Hut 8 commercialized the first phase of its Beacon Point AI data center campus through a 15-year lease for 352 megawatts of IT capacity. The deal involves a confidential, high-investment-grade tenant and carries a base-term contract value of $9.8 billion. If all three five-year renewal options are exercised, the total value could reach $25.1 billion. The project will be designed around Nvidia's DSX reference architecture, with support from counterparties including American Electric Power, Vertiv Holdings Co., and Jacobs.
To finance the development of its 352-megawatt Texas data center, Hut 8 priced a $4.25 billion senior secured notes offering. The company also awarded a sole-source engineering, procurement, and construction management (EPCM) contract to Jacobs Solutions Inc. for a second U.S. AI data center campus.
Analyst Ratings and Future Outlook
Following the earnings release and contract announcements, several analysts adjusted their price targets for Hut 8 stock.
| Firm | Analyst | Rating | New Price Target | Previous Target |
|---|---|---|---|---|
| Piper Sandler | Patrick Moley | Overweight | $127 | $93 |
| BTIG | Gregory Lewis | Buy | $115 | $90 |
| Citizens | Greg P. Miller | - | $140 | $100 |
| Canaccord Genuity | - | - | $130 | $70 |
| Rosenblatt | - | - | $124 | $89 |
Looking ahead, the next major catalyst for the stock is the estimated earnings report on August 6, 2026. Analysts project a loss of 32 cents per share on revenue of $80.96 million. The stock currently holds a Buy rating with an average price target of $120.00 across 21 analysts.
How will Hut 8 manage the execution risks associated with scaling from Bitcoin mining to operating massive 352-megawatt AI data centers?
What impact will the $4.25 billion in senior secured debt have on Hut 8's balance sheet and future profitability?
Could the significant divergence between the current stock price and the average $120 price target indicate market skepticism about the company's ability to meet its AI transition timeline?
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