Benchmark Boosts Hut 8 Price Target Amid Bitcoin Mining Spin-Off and Energy Growth
Benchmark analyst Mark Palmer has raised his price target for Hut 8 (HUT) to $36 from $33 while maintaining a buy rating, citing the company’s upcoming spin-off of most Bitcoin (BTC) mining operations into American Bitcoin (ABTC) as a potential catalyst for re-rating the stock.
Hut 8 also announced plans to add 1.53 gigawatts (GW) of new capacity across four U.S. sites in Louisiana, Texas, and Illinois, more than doubling its total power under management to 2.55 GW.
Palmer highlighted that the expansion signals a clear path to monetizing Hut 8’s energy pipeline. The company has already secured land and power agreements, started building infrastructure, and is in talks with potential customers, positioning itself as a pure-play energy infrastructure firm.
By spinning off its mining operations into ABTC, Hut 8 aims to reduce exposure to Bitcoin price volatility, potentially enabling cheaper project financing. The company has up to $2.4 billion in liquidity to support growth, including $1.2 billion in Bitcoin holdings, $330 million in credit facilities, and a $1 billion equity program.
Palmer also noted that Hut 8 offers a flexible investment opportunity, providing exposure to both Bitcoin and the rapidly growing AI and high-performance computing (HPC) sectors.
