Hut 8’s ‘execution and delivery’ year backs $85 target, Benchmark says

Benchmark maintained its 'buy' rating and $85 price target for Hut 8 (HUT), emphasizing the company's focus on "execution and delivery" in 2026 as it develops its AI data center strategy, particularly the River Bend campus in Louisiana. Analyst Mark Palmer noted that while Q4 results were impacted by mark-to-market bitcoin losses, the key takeaway is Hut 8's transition into a power-first digital infrastructure platform with more predictable, long-duration cash flows. The investment case centers on the 15-year, 245-megawatt IT lease at River Bend, signed with Fluidstack and backed by Google, which is shifting Hut 8's valuation toward infrastructure multiples. Benchmark's $85 target is derived from a 'sum-of-the-parts' analysis incorporating the River Bend lease, potential future capacity, its 60% stake in American Bitcoin, and its bitcoin holdings.

(Source：The Block)