Benchmark Doubles Hut 8 Target, Calls Firm a Hybrid Bitcoin–AI Infrastructure Bet
Benchmark raised its price target on Hut 8 (HUT) to $78 from $36, saying the company’s evolution from a bitcoin miner to an energy infrastructure operator positions it to benefit from rising demand for artificial intelligence (AI) and high-performance computing (HPC).
In a Tuesday report, analyst Mark Palmer reaffirmed a buy rating and said his revised valuation reflects Hut 8’s growing energy pipeline, 64% stake in American Bitcoin Corp. (ABTC), and its 10,264 bitcoin holdings as of June 30. Shares were down 0.7% at $38.57 in early trading.
Palmer described Hut 8 as a “flexible call option” on AI, HPC, and bitcoin, noting that CEO Asher Genoot’s focus on low-cost, high-efficiency power assets has been key to the company’s transformation. The firm currently has 1,530 megawatts (MW) of capacity under development aimed primarily at supporting AI and HPC workloads.
According to Benchmark, investors have embraced the pivot, with Hut 8 shares rising more than fourfold in six months, though the bank believes the stock remains undervalued relative to its intrinsic worth.
Palmer cited several potential growth catalysts, including a tenant deal at the River Bend facility in Louisiana and the expansion of Hut 8’s Vega model in Texas.
The report also noted 1,255 MW under exclusivity and 6,815 MW under due diligence not yet included in valuations. Benchmark estimates Hut 8’s current project costs at about $6 million per MW, roughly half the industry average, underscoring its efficiency and competitive advantage.
