Hut 8’s AI data center deal is bigger than meets the eye: Benchmark lifts price target to $85
Benchmark raised Hut 8's price target to $85 following its $7 billion AI data center deal with Fluidstack, citing superior deal structure.Summary
Wall Street broker Benchmark increased its price target for bitcoin miner Hut 8 (HUT) to $85 from $77, suggesting 93% upside, based on its recent $7 billion, 15-year AI data center lease agreement with Google-backed Fluidstack for its River Bend facility. Analyst Mark Palmer noted that the deal structure, long-dated cash flows backed by an investment-grade counterparty (Google), and embedded expansion options distinguish it from other recent AI agreements, signaling Hut 8's shift toward an institutional-grade digital infrastructure platform. Benchmark values the initial 245 MW tranche at roughly $7.6 billion, reflecting scarcity value and contracted cash flows, with potential total contract value reaching $17.7 billion through renewal options. This strategic timing allowed Hut 8 to secure favorable terms without offering warrants or equity sweeteners.
(Source：CoinDesk)