Benchmark Raises Hut 8 Price Target Amid Bitcoin Mining Spin-Off and Energy Expansion

Benchmark analyst Mark Palmer has lifted his price target for Hut 8 (HUT) to $36 from $33, while maintaining a buy rating on the stock. The upward revision comes as the company prepares to spin out most of its Bitcoin (BTC) mining operations into American Bitcoin (ABTC) within the next week—a move Palmer says could re-rate Hut 8 shares.

Hut 8 also unveiled plans to develop 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 provides a clear path to monetizing Hut 8’s energy pipeline. The company has already secured land and power agreements, is building infrastructure, and is negotiating with potential customers, paving the way for a shift toward energy infrastructure as a core focus.

By separating its mining operations into ABTC, Hut 8 aims to become an energy infrastructure pure-play, which could provide access to cheaper project financing by reducing exposure to Bitcoin price volatility. 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 investors exposure to both the Bitcoin market and the broader AI and high-performance computing (HPC) sectors, making it a flexible strategic play.