Key Takeaways Benchmark analyst Mark Palmer increased the HUT price target from $165 to $195, suggesting approximately 75% potential upside from present trading levels The company finalized a
Shares of HUT were hovering around $111 during Wednesday’s afternoon session, reflecting an increase of about 2% for the trading day. Year-to-date performance shows Hut 8 climbing nearly 120% — and if Benchmark’s latest $195 projection materializes, investors could see an additional 75% appreciation from current price levels.
On Wednesday, Benchmark Equity Research announced an upward revision of its Hut 8 price objective from $165 to $195. This adjustment followed the company’s disclosure that its Beacon Point artificial intelligence campus located in Nueces County, Texas, has achieved complete commercialization.
Notably, this marks Benchmark’s second upward revision within a fortnight. Just one week prior, Palmer elevated the target from $85 to $165 after integrating Beacon Point’s initial phase into his financial projections.
The most recent catalyst stems from a newly signed 15-year lease contract valued at $9.8 billion. Hut 8 executed this agreement on Monday with the campus’ current occupant, effectively doubling the tenant’s committed capacity at Beacon Point to 704 megawatts.
This development brings the aggregate contract value for the 1-gigawatt facility to $19.6 billion. Hut 8 now commands 949 MW of AI data center infrastructure under binding agreements throughout its entire portfolio.
The most recent lease agreement alone is projected to yield $9.8 billion in operational income across its duration, translating to an annual average of approximately $655 million.
When factored together with the initial phase, both lease arrangements are anticipated to deliver average yearly net operating income totaling $1.31 billion.
Palmer emphasized the remarkable velocity with which Hut 8 executed its strategy — advancing Beacon Point from initial lease agreement to complete commercialization within mere months. Remarkably, the facility achieved full lease occupancy prior to power activation.
He characterized the business model as a “power-first data center REIT with an embedded development machine.” The framework operates on a straightforward principle: obtain power access, secure tenant commitments, then arrange construction financing.
According to Palmer, the second lease agreement provides additional confirmation of this methodology’s effectiveness, demonstrating the model’s capacity for expansion and replication.
Benchmark’s assessment extends beyond property assets. The firm’s valuation incorporates Hut 8’s holdings of 10,278 bitcoin, presently valued at approximately $680 million.
Additionally, the analysis includes Hut 8’s 60% ownership position in American Bitcoin, contributing another component to the comprehensive valuation framework.
Benchmark maintains its Buy recommendation on HUT shares in conjunction with the elevated price target.
The $195 objective reflects the firm’s most current assessment following two consecutive upward adjustments within the same month — both triggered by Beacon Point-related announcements.
Hut 8 shares concluded Tuesday’s session around $109 before advancing on Wednesday’s announcement.
The post Hut 8 (HUT) Stock Soars as Benchmark Raises Price Target to $195 on $19.6B Texas AI Campus Lease appeared first on Blockonomi.
