Hut 8 Reveals Roadmap to Unlock Value in Energy Assets as Bitcoin Mining Unit Prepares to Spin Off: Benchmark

Benchmark Raises Hut 8 Price Target as Bitcoin Mining Spin-Off and Energy Expansion Advance

Benchmark analyst Mark Palmer increased his price target for Hut 8 (HUT) to $36 from $33 while reaffirming a buy rating, highlighting the company’s upcoming spin-off of most Bitcoin (BTC) mining operations into American Bitcoin (ABTC) as a potential catalyst for re-rating the stock.

Hut 8 recently unveiled plans to develop 1.53 gigawatts (GW) of new capacity across four U.S. sites in Louisiana, Texas, and Illinois, more than doubling its total power under management to 2.55 GW.

Palmer emphasized that the expansion provides a clear path to monetizing Hut 8’s energy pipeline. The company has secured land and power agreements, begun constructing infrastructure, and is engaging potential customers, positioning itself as a pure-play energy infrastructure firm.

The spin-off into ABTC is designed to reduce exposure to Bitcoin price volatility, potentially unlocking cheaper project financing. Hut 8 has up to $2.4 billion in liquidity to support growth, including $1.2 billion in Bitcoin holdings, $330 million in credit facilities, and a $1 billion equity program.

Palmer also noted that Hut 8 offers investors a flexible play, combining exposure to both Bitcoin and the fast-growing artificial intelligence (AI) and high-performance computing (HPC) sectors.