Why Hut 8 Stock Soared Today

Core Viewpoint - Wall Street is increasingly optimistic about Hut 8, an artificial intelligence (AI) power supplier, with shares rising over 14% following positive analyst commentary [1][3]. Group 1: Stock Performance - Hut 8's stock price increased by 14.21%, closing at $6.27 [4]. - The current market capitalization of Hut 8 is $4.8 billion [4]. - The stock has a 52-week range of $10.04 to $57.29 [5]. Group 2: Analyst Insights - Benchmark analyst Mark Palmer rates Hut 8's stock as a buy, projecting a target price of $85 per share [3]. - Palmer praised Hut 8's recent partnership with Anthropic, which involves delivering a minimum of 245 megawatts (MWs) of computing power [3]. - The agreement includes a 15-year, $7 billion lease with Fluidstack, with potential expansions allowing Hut 8 to deliver up to 2,295 MW of utility capacity [5]. Group 3: Financial Backing and Risk Management - The total contract value for Hut 8 could reach as high as $17.7 billion, enhancing the company's financial outlook [5]. - Alphabet's Google is providing a financial backstop for the lease payments, which mitigates counterparty risk and ensures predictable cash flows for Hut 8 [5].