Benchmark Equity Research raised its price target for Hut 8 Corp. (HUT) to $165 from $85, citing the commercialization of the company's Beacon Point AI data center campus and $16.8 billion in contracted value across two AI infrastructure leases. Hut 8 shares were trading around $97 on Tuesday, with the revised target implying roughly 69% upside from that level. The stock has declined nearly 30% over the last six weeks despite strong operating momentum, according to Benchmark analyst Mark Palmer. The Beacon Point campus in Texas was originally developed for ASIC computing before being repositioned for AI, with Phase 1 redesigned to support 352 MW of IT capacity. Palmer noted that the commercialization of the 1,000 MW site changes the financial outlook for Hut 8 by increasing the project's value.
Beacon Point Phase 1 Lease Carries $9.8 Billion Base-Term Value
The Phase 1 lease at Beacon Point carries $9.8 billion in base-term value and approximately $655 million in expected average annualized net operating income. Phase 1 was redesigned to support 352 MW of IT capacity, up 57% from the original 224 MW plan. Benchmark's revised target incorporates the Beacon Point and River Bend contracts, Hut 8's 60% ownership stake in American Bitcoin Corp., and its holdings of 10,667 bitcoin as of March 31 in the firm's sum-of-the-parts valuation.
Total Lease Value Reaches $16.8 Billion with Potential $42.8 Billion
The Beacon Point contract, combined with the $7 billion River Bend lease with Fluidstack and a Google backstop, brings Hut 8's total base-term lease value to $16.8 billion. The aggregate value could rise to $42.8 billion if tenants exercise embedded five-year renewal options across both sites. Palmer wrote that the company's set-up is worth restating because the numbers have moved quickly and the share price has declined almost 30% during the six weeks despite strong operating momentum.
Hut 8 Development Pipeline Stands at 9,085 MW
Benchmark highlighted Hut 8's broader development platform, which stood at 9,085 MW across projects under exclusivity, development, construction, management, and diligence. The pipeline includes 1,680 MW under exclusivity, 550 MW under development, 830 MW under construction, and 710 MW under management.
Q2 Financials Scheduled Aug. 4 Expected to Reflect Bitcoin Accounting
Hut 8's reported financials for the second quarter are scheduled for release Aug. 4. Palmer cautioned that the results are expected to be messy, citing the mark-to-market accounting treatment of the company's bitcoin holdings. In the first quarter, revenue more than tripled year over year to $71 million, but Hut 8 posted a $253.1 million net loss, with results heavily influenced by $295.7 million in digital asset losses and $50.9 million in stock-based compensation.
FAQ
What did Benchmark Equity Research do with Hut 8's price target?
Benchmark Equity Research raised its price target for Hut 8 Corp. (HUT) to $165 from $85, citing the commercialization of the Beacon Point AI data center campus and $16.8 billion in contracted value across two AI infrastructure leases.
How much is Hut 8's total base-term lease value?
Hut 8's total base-term lease value is $16.8 billion, combining the $9.8 billion Beacon Point Phase 1 lease and the $7 billion River Bend lease with Fluidstack and a Google backstop. The aggregate value could rise to $42.8 billion if tenants exercise embedded five-year renewal options.
When is Hut 8 scheduled to release its Q2 financials?
Hut 8's reported financials for the second quarter are scheduled for release Aug. 4. Benchmark analyst Mark Palmer cautioned that the results are expected to be messy due to the mark-to-market accounting treatment of the company's bitcoin holdings.
