Benchmark Doubles Hut 8 Price Target, Calls It a Hybrid AI–Bitcoin Infrastructure Play

Wall Street broker Benchmark said Hut 8 (HUT) has evolved beyond its bitcoin mining roots into a diversified energy infrastructure company positioned to benefit from growing demand in artificial intelligence (AI) and high-performance computing (HPC).

In a report released Tuesday, analyst Mark Palmer reaffirmed his buy rating on the stock and raised his price target to $78 from $36, citing a sum-of-the-parts valuation that incorporates Hut 8’s expanding energy infrastructure pipeline, its 64% ownership stake in American Bitcoin Corp. (ABTC), and its 10,264 BTC holdings as of June 30.

Hut 8 shares traded 0.7% lower at $38.57 in early Tuesday trading.

Palmer described Hut 8 as a “flexible call option” on the accelerating adoption of AI, HPC, and bitcoin, as well as other emerging power-intensive technologies. Under CEO Asher Genoot, who took the role in February 2024, the company has shifted its focus to controlling low-cost, high-capacity power assets that can be allocated to the most profitable compute workloads.

Hut 8 currently has 1,530 megawatts (MW) of capacity under development, primarily dedicated to AI and HPC data centers, Palmer said.

The analyst noted that investors have embraced Genoot’s pivot, with Hut 8’s stock price quadrupling over the past six months, yet argued that the company’s intrinsic value still exceeds its market capitalization.

Benchmark cited several near-term catalysts, including a potential tenant announcement at the company’s River Bend site in Louisiana, and longer-term growth opportunities from replicating its Vega facility model in Texas.

The broker also pointed to 1,255 MW of capacity under exclusivity and 6,815 MW under due diligence, both excluded from current valuation models, and said Hut 8’s $6 million per MW project estimate remains roughly 50% below industry peers — underscoring what it sees as a significant value gap.