Benchmark: Maintains a Buy rating on Hut 8 with a target price of $85

Odaily Planet Daily reports that Benchmark reiterates a buy rating for Hut 8 and sets a target price of $85, noting that management will focus on execution and delivery in 2026 to advance the AI data center strategy. This statement directly quotes CEO Asher Genoot during the company’s Q4 earnings call. When discussing the flagship River Bend campus in Louisiana, Genoot stated, “We will focus 1000% on execution and delivery in 2026,” and added that construction is “progressing as planned.”

Analyst Mark Palmer noted in a Wednesday report that Q4 results were affected by Bitcoin paper losses, but more importantly, Hut 8 is steadily transforming into a power-first digital infrastructure platform with clearer long-term contract cash flow paths. Hut 8 reported a net loss of $301.8 million for Q4, mainly due to $401.9 million in unrealized digital asset losses. Revenue nearly tripled year-over-year to $88.5 million, with significant growth in compute services revenue. Palmer continued that the core investment thesis is based on the 15-year, 245 MW River Bend IT lease signed with Fluidstack, backed financially by Google. The approximately $7 billion base lease helps align Hut 8’s valuation with infrastructure multiples.

Benchmark’s $85 target price is based on Palmer’s “sum-of-the-parts” valuation model, which includes the River Bend lease, probabilistic valuation of up to 1,000 MW under the initial purchase option, the market value of Hut 8’s 60% stake in American Bitcoin, and its Bitcoin holdings. As of Thursday morning, Hut 8’s stock was slightly below $55, down about 1.5% for the day. The stock remains below the recent high of around $66 but has increased over 300% in the past year, even as Bitcoin declined about 27% during the same period. (The Block)