Benchmark Raises Hut 8 Target, Citing $50B Data Center Contract Pipeline
What happened: Benchmark increased its price target on Hut 8 from $165 to $195—an 18% boost—after the company secured a second 15-year, 352 MW lease at its Beacon Point campus in Texas.
What happened: Benchmark increased its price target on Hut 8 from $165 to $195—an 18% boost—after the company secured a second 15-year, 352 MW lease at its Beacon Point campus in Texas. The site now has 704 MW under contract, with a combined annual net operating income projected at $1.31 billion and total contract value up to $50.2 billion if renewal options are exercised. Hut 8 shares are up nearly 120% year to date.
Why it matters: Hut 8’s evolution into a "power-first data center REIT" reflects the convergence of energy infrastructure and AI-driven compute demand. The scale of its contracts and rapid share appreciation underscore investor appetite for AI-exposed infrastructure plays. However, the identity of its anchor tenant remains undisclosed, and execution risk remains if project timelines slip or tenants fail to stabilize as projected.
Source: The Block