TLDR
- Benchmark raised its price target on HUT to $195 from $165, implying ~75% upside from current levels
- Hut 8 signed a second 15-year, $9.8 billion lease at its Beacon Point campus in Texas, doubling the tenant’s contracted capacity to 704 MW
- The two leases combined are expected to generate average annual net operating income of $1.31 billion
- HUT stock was trading around $111 on Wednesday, up ~2% on the day and nearly 120% year to date
- Benchmark analyst Mark Palmer describes Hut 8’s model as a “power-first data center REIT with an embedded development machine”
HUT stock was trading at around $111 on Wednesday afternoon, up roughly 2% on the day. That puts Hut 8 up nearly 120% year to date — and Benchmark’s new $195 target would add another 75% from here if it plays out.
Benchmark Equity Research raised its price target on Hut 8 to $195 from $165 on Wednesday. The upgrade came after Hut 8 announced the full commercialization of its Beacon Point AI campus in Nueces County, Texas.
This is actually Benchmark’s second target hike in two weeks. Analyst Mark Palmer raised the target to $165 from $85 just last week after incorporating the first phase of Beacon Point into his model.
The catalyst this time was a second 15-year lease agreement worth $9.8 billion. Hut 8 signed that deal Monday with the campus’ existing tenant, doubling their contracted capacity at Beacon Point to 704 MW.
That brings the total contract value at the 1-gigawatt campus to $19.6 billion. Hut 8 now has 949 MW of AI data center capacity under contract across its portfolio.
The second lease alone is expected to generate $9.8 billion in operating income over its life, averaging roughly $655 million per year.
Combined with the first phase, the two leases are projected to produce average annual net operating income of $1.31 billion.
A New Kind of Data Center Play
Palmer highlighted the speed at which Hut 8 moved — taking Beacon Point from first lease to full commercialization in just a few months. The site was fully leased before it had even been energized.
He called the model a “power-first data center REIT with an embedded development machine.” The idea is simple: secure the power, find the tenant, then finance the build.
Palmer said the second lease further validates that approach, showing the model can scale and repeat.
Bitcoin Holdings Still in the Mix
Benchmark’s valuation doesn’t stop at real estate. It also accounts for Hut 8’s 10,278 bitcoin, currently worth close to $680 million.
The firm also factors in Hut 8’s 60% stake in American Bitcoin, which adds another layer to the overall valuation.
Benchmark keeps a Buy rating on HUT alongside the raised target.
The $195 target represents the firm’s latest view after two upward revisions in the same month — both driven by Beacon Point developments.
Hut 8 stock closed Tuesday at around $109 before gaining on the news Wednesday.
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