Share this article
Benchmark Sees Hut 8 as Hybrid AI–Bitcoin Power Play, Price Target Doubled to $78
The Wall Street broker said Hut 8’s shift to energy infrastructure from bitcoin mining makes it a unique bet on AI, HPC and future power-hungry technologies.
Updated Oct 28, 2025, 3:11 p.m. Published Oct 28, 2025, 12:03 p.m.
Make us preferred on Google
What to know:
- Benchmark more than doubled its Hut 8 price target to $78 from $36, while maintaining its buy rating on the stock.
- The broker said Hut 8 is evolving from bitcoin mining to an energy infrastructure platform powering AI and HPC data centers.
- Benchmark called Hut 8 a “flexible call option” on both AI growth and bitcoin upside.
Wall Street broker Benchmark said Hut 8 (HUT) has transformed from a bitcoin miner into a broader energy infrastructure company positioned to capitalize on artificial intelligence (AI) and high-performance computing (HPC) demand.
In a Tuesday report, analyst Mark Palmer reiterated his buy rating on the shares and more than doubled his price target to $78 from $36. Palmer cited a sum-of-the-parts analysis based on the company’s energy infrastructure pipeline, its 64% stake in American Bitcoin Corp. (ABTC), and the 10,264 BTC on its balance sheet as of June 30.
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
The shares were 0.7% lower in early trading at $38.57.
Palmer described the stock as a “flexible call option” on the rise of AI, HPC and bitcoin as well as on future energy-intensive applications.
Under CEO Asher Genoot, who took the helm in February 2024, Hut 8 has focused on controlling low-cost power infrastructure that can be deployed toward the most profitable workloads, with 1,530 megawatts (MW) of capacity under development aimed primarily at AI and HPC data centers, Palmer wrote.
The analyst noted that investors have rewarded Genoot's strategy, with the stock more than quadrupling in the past six months. Even so, Hut 8’s intrinsic value still exceeds its market capitalization, he said.
Benchmark said near-term catalysts include a potential tenant signing at Hut 8’s River Bend site in Louisiana, while longer-term growth could come from replicating the model of its Vega facility in Texas.
The broker also highlighted the company’s 1,255 MW of capacity under exclusivity and 6,815 MW under diligence, both excluded from its valuation, and said its $6 million-per-MW estimate for current projects is about 50% below peer averages.
Read more: Hut 8 Maps 'Path to Monetization' of Energy Assets as Bitcoin Mining Carve-Out Nears: Benchmark
AI Disclaimer: Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards. For more information, see CoinDesk's full AI Policy.
More For You
Small investors are buying bitcoin. For a rally to succeed, the whales need to join in.
Small wallets have increased their BTC holdings by 2.5% since October's all-time high while large holders trimmed 0.8%, Santiment data shows.
What to know:
- Bitcoin wallets holding less than 0.1 BTC have increased their share of supply to the highest since mid-2024 even as the price holds around the mid-$60,000s.
- Larger holders with 10 to 10,000 bitcoins — the whales and sharks that typically drive major moves — have reduced their positions since the October peak.
- The divergence supports choppy, fragile price action because retail demand alone cannot sustain rallies when big wallets are distributing into every recovery.
Top Stories
