Overview
- Benchmark raised its price target on Hut 8 to $165 on Tuesday, keeping a Buy rating, and Lucid Capital Markets separately initiated coverage with a $226 target.
- Hut 8 signed two 15‑year, triple‑net, take‑or‑pay leases at its River Bend, Louisiana and Beacon Point, Texas campuses that cover 597 megawatts and are valued at about $16.8 billion in base‑term lease value.
- The company closed $7.5 billion in non‑dilutive project financing with a $4.25 billion bond for Beacon Point and a $3.25 billion raise for River Bend, preserving shareholder equity and securing long‑term funding.
- Hut 8’s development pipeline has grown beyond 9 gigawatts, and the triple‑net lease structure shifts most operating and commodity risk to tenants, creating predictable lease income that supports investment‑grade financing.
- Analysts caution near‑term Q2 results may look volatile because mark‑to‑market accounting on bitcoin holdings and consolidation of American Bitcoin can obscure the leased cash flows, and the company has named E. Stanley O’Neal as board chair to bolster governance during the transition.