Benchmark analyst Mark Palmer has maintained a Buy rating on Hut 8 and raised the price target to $195, up from the previous $165. The revised target reflects increased confidence in the company's performance and market position.

Rating and Price Target Details

The recommendation covers Hut 8's stock performance and future outlook. Below are the key details of the analyst's update:

The adjustment signals a positive outlook for the company's growth trajectory.

Hut 8 Corp. shares rose 11.56% to $102.02 after the company fully commercialized its 1-gigawatt Beacon Point AI data center campus through a second 352-megawatt IT lease. The 15-year triple net lease is valued at $9.8 billion over its base term, inclusive of a 3.0% annual base rent escalator, and doubles the existing tenant’s contracted IT capacity at the campus to 704 MW. This transaction validates Hut 8's power-first development model, securing investment-grade cash flows for the entire site against its 1,000 MW of utility capacity secured under an interconnection agreement with AEP Texas.

The tenant, a high-investment-grade company that also executed the Phase 1 lease, will be served by a second 352 MW AI factory designed to NVIDIA’s DSX reference architecture. The agreement includes three five-year renewal options, which could increase the potential campus-level contract value to $50.2 billion if exercised. Initial Phase 2 data hall delivery is expected in the second quarter of 2028. "We took this greenfield site from first lease to full commercialization in just months," said Asher Genoot, CEO of Hut 8. "That speaks to the quality of the sites we originate, the credibility of our delivery, and the long-term orientation of our partnerships."

Portfolio and Transaction Details

With this addition, Hut 8's total contracted IT capacity across its AI data center portfolio reaches 949 MW, comprising 704 MW at Beacon Point and 245 MW at River Bend. The cumulative base-term contract value for the portfolio stands at $26.6 billion, with an expected average annual NOI of more than $1.75 billion. All of Hut 8’s contracted AI data center capacity is leased to or backstopped by investment-grade counterparties.

Capital Management and Execution

Site preparation is underway, and long-lead critical equipment has been procured, with initial energization scheduled for Q1 2027. Separately, Hut 8 launched a $250.0 million stock repurchase program on December 4, 2024. The company may repurchase up to 6,159,439 shares of common stock, representing 5.0% of the current issued and outstanding shares, over the next twelve months through Nasdaq at prevailing market prices.