Hut 8’s AI expansion and ABTC stake form ‘hybrid story with room to run,’ implying 50% upside: Benchmark
Benchmark reaffirmed a Buy rating on Hut 8, raising its price target to $78 based on its hybrid energy/AI infrastructure platform and ABTC stake.Summary
Benchmark analysts maintained a Buy rating on Hut 8 Corp. (HUT) and increased the price target to $78, viewing the company's evolving energy and data-center infrastructure platform as a "differentiated hybrid story with plenty of room to run." Lead analyst Mark Palmer noted that under CEO Asher Genoot, Hut 8 has transitioned from a pure bitcoin miner to an energy-infrastructure platform, dedicating its 1.5-gigawatt pipeline to AI and high-performance-compute data centers. Benchmark values this power portfolio at a discount compared to comparable infrastructure deals, suggesting further upside. The valuation also incorporates the market value of Hut 8's 64% stake in American Bitcoin Corp. (ABTC) and its treasury of 10,667 BTC (worth over $1.2 billion). The spin-off of mining operations into ABTC allows the parent company better access to project-finance capital. Benchmark highlighted Hut 8's River Bend site in Louisiana as a compelling greenfield opportunity for AI infrastructure. The firm suggests Hut 8's hybrid model—combining AI development, hosting, and a significant bitcoin position—positions it favorably against peers still reliant only on mining revenue.
(Source：The Block)