Wall Street broker Benchmark said bitcoin miner Hut 8 (HUT) is using last week’s River Bend announcement to cement a shift from a crypto-first power owner into an institutional-grade digital infrastructure platform. Analyst Mark Palmer said the structure, counterparties and cash-flow quality separate HUT's deal from the wave of recent AI data center agreements. He reiterated his buy rating on the stock and lifted his price target to $85 from $77, suggesting 93% upside from Friday's close of $44.12. Shares ...

Core Insights - Hut 8 has entered into a significant AI data center lease valued at $7 billion with Fluidstack, marking a strategic pivot towards AI infrastructure among crypto miners [1][2] - The lease covers 245 megawatts of AI computing capacity at Hut 8's River Bend campus in Louisiana, with potential total contract value reaching approximately $17.7 billion over its full term [2] - The project is expected to generate around $6.9 billion in net operating income during the initial lease period, supported by financial backing from Google [3] Company Developments - Following the announcement of the AI lease, Hut 8 shares experienced a surge of about 20% in pre-market trading, indicating renewed investor interest and efforts to stabilize the company's business [4] - The agreement with Fluidstack includes priority rights for leasing up to an additional 1,000 megawatts as the campus expands, reflecting a long-term growth strategy [2] - Hut 8's shift towards AI computing is part of a broader trend among Bitcoin miners to diversify operations in response to structural challenges in Bitcoin mining [6][7] Industry Context - The Bitcoin mining industry is facing increasing challenges, including rising network difficulty, higher energy costs, and compressed margins, prompting miners to seek alternative revenue streams [5][6] - The rapid growth of artificial intelligence has led to a surge in demand for computing power, positioning Bitcoin miners, who already control significant energy resources, to pivot towards AI data centers as a viable strategy [7]

Hut 8 (HUT) shares are up 20% in pre-market trading after the company announced a landmark long term AI data center lease with Fluidstack. The bitcoin and AI miner announced it has signed a 15 year, $7 billion lease with AI infrastructure firm Fluidstack for 245 megawatts (MW) of IT capacity at its River Bend campus in Louisiana. It also grants Fluidstack a Right of First Offer (ROFO) for up to an additional 1,000 megawatts of IT capacity as the campus expands.The agreement includes three 5 year renewal ...