AI powerhouse Anthropic, the creator of AI chatbot Claude, is about to raise $20 billion in fresh investment from venture capitalists and other investors, the Financial Times reported, in a deal that would value the company at $350 billion. The San Francisco-based firm had targeted a $10 billion investment round, people familiar with the matter told the FT, but it quickly became evident that investors are hungrier for AI than anticipated. Anywhere between $10 to $15 billion of the fresh capital will be ...

As if continuing declines in the bitcoin price weren’t enough, shares of bitcoin miners who have shifted their business plan to focus on AI infrastructure were mostly sharply lower Monday following Nvidia's $2 billion investment in CoreWeave. While the investment underscores growing demand for high-performance computing as AI applications expand, it also highlights the challenges for independent miners trying to reposition themselves as infrastructure providers in the space. Cipher Mining (CIFR), CleanS ...

I covered HUT 8 Mining Corp. ( HUT ) twice last year with a Buy rating in both cases. In May 2025, on the back of the Q1 earnings, “ Hut 8 Q1 Earnings: A $1BI started out as a crypto investor a decade ago and remain deeply active in the crypto space. I cover Bitcoin miners, digital asset treasuries, and crypto ETFs majorly, but I also seek alpha in tech equities, especially in emerging sectors like quantum computing and orbital intelligence. I have initiated coverage as a first analyst here on Seeking Alpha ...

The new year has started off strong for Hut 8 (HUT), with shares up more than 20% in the year to date. And while a few days doesn’t make a trend, there’s plenty of compelling evidence that supports long delta exposure with a March bull call spread in HUT stock. A Fragmented AI Trade It’s been an odd start for all things AI in 2026. More News from Barchart Hyperscaler behemoth Microsoft (MSFT) is down in the year to date, and Amazon (AMZN) is just up 1.8%. But it’s been a quite different and bullish a ...

Core Insights - The article emphasizes the importance of macroeconomic analysis and market trends for informed investment decisions [1] Group 1: Investment Analysis - The author focuses on providing tools and knowledge for investors to make confident decisions based on current and forward-looking market trends [1] - Fundamental and technical analysis are highlighted as key components in understanding market dynamics [1] Group 2: Author's Background - The author identifies as an investment author with a passion for finance and global markets, indicating a strong background in economic analysis [1] - There is an openness to feedback, suggesting a commitment to continuous improvement in investment writing [1]

Core Insights - Hut 8 Corp. (HUT) was initially covered when its stock was trading at $40, influenced by the news of a Fluidstack data center lease [1] Company Overview - Hut 8 Corp. is involved in the biotechnology sector, focusing on innovative drug development and therapeutic research [1] - The company aims to identify and invest in biotechnology firms that are pioneering unique therapies and technologies [1] Analyst Background - The analyst has a Master's degree in Cell Biology and extensive experience in drug discovery, which informs their investment analysis [1] - The analyst has been active in the investment space for five years, with a focus on biotech equity analysis for the past four years [1] Investment Approach - The investment strategy emphasizes evaluating the scientific basis of drug candidates, competitive landscape, clinical trial design, and market opportunities [1] - The goal is to provide research that balances technical soundness with investment viability, helping investors navigate the biotech sector [1]

Core Viewpoint - Hut 8 Corp is highlighted as a leading cryptocurrency and blockchain stock, with a recent price target increase by Benchmark to $85 due to a significant $7 billion data center deal that enhances its digital infrastructure business alongside its crypto operations [1][2]. Group 1: Financial Developments - Hut 8 has signed a 15-year lease agreement worth $7 billion with Fluidstack for 245 megawatts of IT capacity at its River Bend data center [2]. - Google will provide financial backing for the obligations during the 15-year lease term, indicating strong support for Hut 8's financial stability [2]. - Keefe, Bruyette & Woods has also raised Hut 8's price target to $55 from $30, citing strong execution on the high-performance computing colocation deal [4]. Group 2: Business Operations - Hut 8 operates an energy-first infrastructure platform, focusing on large-scale data centers for energy-intensive applications such as AI and Bitcoin mining [5]. - The company offers a range of services including power generation, digital infrastructure, compute power (GPU/CPU), and managed data center services [5]. Group 3: Strategic Partnerships - The deal structure includes multiple layers of embedded expansion optionality across three counterparties: Anthropic, Fluidstack, and Google, which enhances Hut 8's strategic positioning [3]. - The company's stake in American Bitcoin, a Bitcoin mining company, is viewed positively for future growth [2].

Core Insights - The demand for AI infrastructure is driving significant investment in data centers and related technologies, with leading companies like Advanced Micro Devices (AMD) and Hut 8 positioned to benefit from this trend [1][2]. Group 1: Advanced Micro Devices (AMD) - AMD experienced a remarkable 77% stock increase in 2025, largely due to a partnership with OpenAI, and is expected to continue its growth trajectory in 2026 [3][5]. - The company reported a 36% year-over-year revenue growth in Q3, with adjusted net income rising by 31% [3][6]. - AMD anticipates a long-term revenue growth rate of 35% annually, with adjusted earnings per share projected to exceed $20 within the next three to five years [6]. Group 2: Hut 8 - Hut 8 signed a significant 15-year, $7 billion agreement with Anthropic to provide 245 megawatts of data center capacity, potentially scaling to 2.3 gigawatts, with the deal's value possibly increasing to $17.7 billion [8][9]. - The company reported a 91% year-over-year revenue increase in Q3, reaching $83 million, primarily driven by Bitcoin mining operations [12]. - Hut 8's market capitalization stands at $6.3 billion, which is considered relatively low compared to the value of its contracts and growth potential [10][11].

Core Insights - Hut 8 Corp.'s power-first strategy is highly sensitive to grid reliability, impacting operational continuity and the monetization of capital-intensive power assets [1] - The company’s business model focuses on securing and deploying large-scale electricity for Bitcoin mining and future AI infrastructure [1] Group 1: Business Model and Strategy - Hut 8's development pipeline exceeded 8 gigawatts as of September 30, 2025, highlighting the growing demand for energy in Bitcoin mining and AI computing [2] - The company is actively managing risks by diversifying across regions and power markets, utilizing Bitcoin mining as a flexible load to support power investments until AI use cases scale [4][10] Group 2: Industry Challenges - Industry-wide challenges such as generator retirements, transmission disruptions, and potential regional power shortages could hinder Hut 8's ability to convert its pipeline into operational assets [3] - The availability of power and grid readiness are critical for the deployment timelines of hyperscale AI infrastructure [3] Group 3: Competitive Landscape - Bitfarms is a close competitor with 473 MW of owned power and a 2.1 GW pipeline, but it is more exposed to Bitcoin volatility compared to Hut 8 [6] - TeraWulf is advancing in HPC leasing with long-term contracts, but it carries higher debt and is more concentrated in a few customers, while Hut 8 benefits from greater platform flexibility [7] Group 4: Financial Performance - Hut 8's shares have increased by 176.2% in the past six months, outperforming the broader Zacks Finance sector [8] - The Zacks Consensus Estimate for Hut 8's 2026 loss is projected at 90 cents per share, widening from a previous estimate of 60 cents [15]

Core Insights - HUT 8 Corp.'s shares have increased by 171.4% over the past six months, significantly outperforming the Zacks Finance sector and the Zacks Financial Miscellaneous Services industry [1][2] - The stock's performance is attributed to long-term power contract visibility, a shift towards AI-focused data centers, and strategic partnerships with major technology companies like Anthropic and Google [1][2] Performance Comparison - Compared to peers in digital asset mining and infrastructure, HUT 8 has shown stronger performance, with Riot Platforms increasing by 22.4%, while CleanSpark and Marathon Digital experienced declines of 7.9% and 46.8%, respectively [2] Financial Exposure - HUT 8's earnings are heavily reliant on Bitcoin price fluctuations, leading to inherent volatility in financial performance [5] - As of September 30, 2025, HUT 8 held 13,696 Bitcoin valued at approximately $1.6 billion, making Bitcoin a core asset and liquidity source [6] - The company faces structural risks related to Bitcoin mining economics, including halving events and rising network difficulty, which could pressure mining margins [7] Power and Grid Constraints - HUT 8's business model is dependent on reliable, large-scale power access, with management highlighting challenges such as rising electricity demand and slow transmission expansion that could lead to power supply shortfalls between 2025 and 2029 [9][10] - The company's development pipeline exceeds 8.6 GW, and execution risks are heightened due to the need for utility coordination and permitting approvals [10] Valuation Concerns - HUT 8's stock is considered overvalued, trading at a forward price/sales ratio of 14.36x, significantly higher than the industry average of 3.36x [11][12] - Compared to peers, HUT 8's valuation multiples are substantially higher, indicating that even minor setbacks could compress its valuation [12] Earnings Estimates - The Zacks Consensus Estimate for HUT's first-quarter 2026 loss is 11 cents per share, unchanged over the past 30 days, but an improvement from the previous year's loss of 18 cents [15] - The estimate for the full year 2026 has widened to a loss of 60 cents per share, reflecting uncertainty regarding the company's path to profitability [16] Investment Outlook - Despite the recent stock surge, HUT 8 is viewed as a high-risk investment due to its reliance on Bitcoin profits, exposure to electricity and grid constraints, and a growing project pipeline [18]