Hut 8’s 13% selloff over lack of AI tenant ‘short-sighted,’ says Benchmark after record quarter
Benchmark called Hut 8's 13% stock selloff unwarranted after record Q3 results, despite the lack of a confirmed AI tenant for its River Bend project.Summary
Hut 8 Corp. shares dropped as much as 13% following a report of record third-quarter results because the company did not confirm a hyperscale AI tenant for its River Bend project in Louisiana. Benchmark Equity Research Analyst Mark Palmer deemed the selloff "short-sighted and unwarranted," suggesting traders were unwinding speculative positions based on an expected near-term announcement that management never guaranteed. CEO Asher Genoot confirmed development of the 300 MW facility remains on track for late 2026 operations, emphasizing a focus on securing the *right* long-term tenant. Palmer noted Hut 8 can afford to wait for an optimal deal, given the AI infrastructure boom. The record quarter showed $83.5 million in revenue (up 91% YoY) and $50.6 million in net income, driven by its bitcoin mining subsidiary. Hut 8 now holds 13,696 bitcoins, placing it among the top 10 largest public holders. Benchmark reiterated its buy rating with a $78 target.
(Source：The Block)