Hut 8 Charts Strategy to Monetize Energy Assets Ahead of Bitcoin Mining Carve-Out: Benchmark

Benchmark Lifts Hut 8 Price Target as Bitcoin Mining Spin-Off and Energy Expansion Advance

Benchmark analyst Mark Palmer raised his price target for Hut 8 (HUT) to $36 from $33 while reaffirming a buy rating, citing the company’s upcoming spin-off of most Bitcoin (BTC) mining operations into American Bitcoin (ABTC) as a potential share re-rating catalyst.

Hut 8 recently 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 power under management to 2.55 GW.

Palmer highlighted the significance of the expansion, noting it provides a clear path to monetizing Hut 8’s energy pipeline. The company has secured land and power agreements, begun building infrastructure, and is negotiating with potential customers, positioning itself as an energy infrastructure-focused enterprise.

By carving out its mining operations into ABTC, Hut 8 aims to reduce exposure to Bitcoin price volatility, potentially unlocking 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 emphasized Hut 8’s flexibility, offering investors exposure to both Bitcoin and the booming artificial intelligence (AI) and high-performance computing (HPC) sectors.