Sell-side bulls see major upside in Hut 8 after $7 billion AI deal
Cantor and Canaccord analysts boosted Hut 8's price target following a major 15-year, Google-backed AI lease deal.Summary
Cantor Fitzgerald analyst Brett Knoblauch raised Hut 8's (HUT) price target to $72 from $64 after the company announced a $7 billion, 15-year lease agreement with AI infrastructure firm Fluidstack, financially backstopped by Google. Knoblauch highlighted the deal's 15-year duration, 1.35 PUE ratio, and projected $6.9 billion in net operating income over the base term, suggesting 80% upside from the previous closing price. The lease covers 245 MW at Hut 8’s River Bend data center and includes renewal options that could increase the total value to $17.7 billion. Canaccord Genuity also increased its price target for HUT to $62 from $54, valuing the River Bend site at $22 per share based on the new contract terms. Analysts believe this deal offsets concerns regarding Hut 8's bitcoin holdings and positions the company well for future scaling beyond its crypto origins.
(Source：CoinDesk)