Svmuu News: Benchmark has raised its price target for Bitcoin mining company Hut 8 (HUT) from $85 to $165, citing the company’s accelerated commercialization of its AI data center business and the fact that it has secured long-term AI infrastructure contracts totaling $16.8 billion.Analyst Mark Palmer stated that the commercialization progress of Hut 8’s Beacon Point AI data center campus in Texas has “changed the company’s valuation logic,” significantly boosting the project’s value.
Currently, Hut 8’s stock price is around $97, and Benchmark’s new target price implies upside potential of approximately 69%.Previously, the stock had fallen nearly 30% over the past six weeks.
According to Benchmark’s calculations, Phase 1 of the Beacon Point campus—following its redesign—will support 352 MW of IT capacity, a 57% increase from the initial 224 MW plan.The base term value of Phase 1 of the project is approximately $9.8 billion, with projected annualized net operating income of approximately $655 million.
In addition, the River Bend data center lease signed by Hut 8 with Fluidstack—and backed by Google—is valued at approximately $7 billion.The combined base term value of the two contracts totals $16.8 billion, and if tenants exercise the five-year renewal options included in both agreements, the potential total value could rise to $42.8 billion. (The Block)