Analyst Note: Benchmark Sees Hut 8’s AI–Bitcoin Model Driving Revaluation, Raises PT to $78

Benchmark Doubles Hut 8 Price Target, Citing Shift Toward AI and Energy Infrastructure

Benchmark raised its price target for Hut 8 (HUT) to $78 from $36, saying the company’s transition from bitcoin mining to a broader energy and computing infrastructure business positions it to benefit from growing demand for AI and high-performance computing (HPC).

In a note issued Tuesday, analyst Mark Palmer reaffirmed a buy rating, citing Hut 8’s expanding power pipeline, 64% ownership in American Bitcoin Corp. (ABTC), and 10,264 BTC holdings as of June 30. Shares traded 0.7% lower at $38.57.

Palmer described Hut 8 as a “flexible call option” on AI, HPC, and bitcoin, highlighting CEO Asher Genoot’s strategy of controlling low-cost, scalable energy assets. The company currently has 1,530 megawatts (MW) of capacity under development for AI and HPC data centers.

Benchmark said the stock’s fourfold rise over the past six months reflects investor confidence in the pivot, though the firm believes Hut 8’s intrinsic value remains underappreciated.

Upcoming catalysts include a potential tenant deal at the River Bend site in Louisiana and further scaling of its Vega facility model in Texas.

The report also noted 1,255 MW of capacity under exclusivity and 6,815 MW under diligence, both excluded from current estimates. Benchmark said Hut 8’s $6 million per MW cost is about 50% below peers, signaling significant upside potential as the firm builds out its infrastructure base.