Hut 8 Viewed as Dual AI and Bitcoin Play as Benchmark Lifts Target to $78

Benchmark Sees Hut 8 as Hybrid Bitcoin–AI Infrastructure Play, Raises Target to $78

Benchmark said Hut 8 (HUT) has evolved from a bitcoin miner into a diversified energy and computing infrastructure firm positioned to benefit from surging demand in artificial intelligence (AI) and high-performance computing (HPC).

In a report issued Tuesday, analyst Mark Palmer reiterated a buy rating and lifted his price target to $78 from $36, citing a sum-of-the-parts analysis that factors in Hut 8’s expanding energy portfolio, its 64% ownership in American Bitcoin Corp. (ABTC), and 10,264 BTC held as of June 30.

Shares slipped 0.7% to $38.57 in early trading.

Palmer called the company a “flexible call option” on AI, HPC, and bitcoin adoption, noting that under CEO Asher Genoot, who took over in February 2024, Hut 8 has prioritized low-cost power infrastructure capable of supporting the most profitable compute workloads. The firm currently has 1,530 megawatts (MW) of capacity under development focused on AI and HPC data centers.

Benchmark said investors have rewarded the pivot, with the stock up more than fourfold in the past six months, but argued that Hut 8’s intrinsic value still outpaces its market cap.

Potential catalysts include a tenant announcement at the River Bend site in Louisiana and the replication of its Vega data center model in Texas.

Benchmark also highlighted an additional 1,255 MW of capacity under exclusivity and 6,815 MW under diligence, both excluded from current valuations. The firm noted that Hut 8’s $6 million per MW build cost remains around 50% below peers, suggesting substantial upside as the company scales its infrastructure platform.

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