Svmuu News: 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 is the second time this month that Benchmark has raised its price target for Hut 8.Last week, analyst Mark Palmer had already factored in the first phase of the Beacon Point project into his valuation, raising the target price from $85 to $165. The new target price implies an upside of approximately 75% compared to Hut 8’s stock price of about $111 on Wednesday.
Hut 8 has currently secured contracts for 949 megawatts of AI data center capacity, indicating that its business is shifting further away from traditional “Bitcoin” mining toward AI infrastructure and a power-driven data center model.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 price rose about 2% on Wednesday, with a year-to-date gain of nearly 120%. As demand for AI computing power continues to grow, the market is reassessing the value of the large-scale power and data center resources held by “Bitcoin” mining companies.