Benchmark Raises Hut 8 Price Target to $195

Odaily, Benchmark Equity Research raised its price target for Hut 8 from $165 to $195 on Wednesday, citing the full commercialization of the company's Beacon Point AI data center campus in Texas.

This marks Benchmark's second price target increase for Hut 8 this month. Last week, analyst Mark Palmer incorporated the first phase of the Beacon Point project into his valuation, raising the target from $85 to $165. The new target implies approximately 75% upside from Hut 8's stock price of around $111 on Wednesday.

Hut 8 has now signed contracts for 949 megawatts of AI data center capacity, indicating a further shift in its business model from traditional Bitcoin mining towards AI infrastructure and power-driven data center operations. Benchmark believes the company is evolving into a "power-first data center REIT," an infrastructure platform centered on power resources and data center assets.

Hut 8's stock rose about 2% on Wednesday, bringing its year-to-date gains to nearly 120%. As demand for AI computing power continues to grow, the market is reassessing the value of the substantial power and data center resources held by Bitcoin mining companies.