TLDR
- Benchmark Securities increased HUT’s price target to $195 from $165, suggesting approximately 75% potential upside from present trading levels
- The company finalized a second 15-year agreement valued at $9.8 billion for its Beacon Point facility in Texas, increasing total tenant capacity to 704 MW
- Both lease agreements are projected to deliver average yearly net operating income totaling $1.31 billion
- Shares of HUT were changing hands near $111 Wednesday, gaining roughly 2% during the session and climbing almost 120% since January
- Analyst Mark Palmer from Benchmark characterizes Hut 8’s business approach as a “power-first data center REIT with an embedded development machine”
Shares of HUT were hovering around $111 during Wednesday’s trading session, posting gains of approximately 2%. The stock has skyrocketed nearly 120% year to date — and Benchmark’s updated $195 price objective suggests an additional 75% climb could be ahead.
On Wednesday, Benchmark Equity Research elevated its price objective for Hut 8 from $165 to $195. The revision followed Hut 8‘s announcement that its Beacon Point AI campus located in Nueces County, Texas had achieved complete commercialization.
This marks Benchmark’s second target increase within a fortnight. Just last week, analyst Mark Palmer bumped the target from $85 to $165 after integrating Beacon Point’s initial phase into his financial projections.
The driver behind this latest upgrade was another 15-year lease deal valued at $9.8 billion. The company finalized this agreement Monday with Beacon Point’s current tenant, effectively doubling their contracted power allocation at the site to 704 MW.
This development pushes the aggregate contract value for the 1-gigawatt facility to $19.6 billion. Across its entire portfolio, Hut 8 now maintains 949 MW of AI data center capacity under signed agreements.
The most recent lease by itself is anticipated to deliver $9.8 billion in operating income throughout its duration, translating to approximately $655 million annually.
When combined with the initial phase, both agreements are forecast to yield average annual net operating income of $1.31 billion.
An Innovative Approach to Data Center Development
Palmer emphasized the remarkable pace at which Hut 8 executed its strategy — advancing Beacon Point from initial lease to complete commercialization within mere months. The facility achieved full occupancy before power infrastructure was even operational.
He described the business model as a “power-first data center REIT with an embedded development machine.” The strategy is straightforward: lock in power resources, identify tenants, then arrange financing for construction.
According to Palmer, the second lease agreement reinforces the viability of this methodology, demonstrating its scalability and repeatability.
Digital Asset Holdings Remain a Factor
Benchmark’s assessment extends beyond property holdings. The firm incorporates Hut 8’s treasury of 10,278 bitcoin, presently valued at approximately $680 million.
Additionally, the valuation model includes Hut 8’s 60% ownership position in American Bitcoin, contributing another component to the comprehensive assessment.
Benchmark maintains its Buy recommendation on HUT in conjunction with the elevated price target.
The $195 objective reflects the firm’s most recent outlook following two upward adjustments within the same month — both triggered by Beacon Point milestones.
Hut 8 shares finished Tuesday’s session around $109 before advancing Wednesday on the analyst news.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
