Hut 8 Corp. (Nasdaq: HUT; TSX: HUT) is back in the spotlight on Monday, December 22, 2025, as the company’s shares extend a sharp rally tied to its pivot from crypto-native infrastructure toward AI and high-performance computing (HPC) data centers. The latest catalyst: Benchmark raised its price target to a Street-high $85, arguing that Hut 8’s newly announced River Bend transaction marks a structural shift in the company’s revenue quality and durability. [1]
As of midday trading on Dec. 22, Hut 8 shares were up roughly 16% on the session, reflecting how quickly the market is repricing the company after last week’s blockbuster AI lease announcement. [2]
What’s new on Dec. 22: Benchmark lifts its Hut 8 price target to $85
In research commentary picked up across market newswires on Dec. 22, Benchmark analyst Mark Palmer lifted his Hut 8 price target to $85 from $78 and reiterated a Buy rating. [3]
Benchmark’s thesis centers on the idea that River Bend is not “just another data center deal,” but a strategic inflection point: Hut 8 evolving into what the analyst described (via coverage) as an institutional-grade digital infrastructure platform rather than a business primarily tethered to crypto cycle volatility. [4]
Two details from the Dec. 22 coverage help explain why this note moved the stock:
- Palmer highlighted “investment-grade-backstopped cash flows” and multiple layers of expansion optionality involving Anthropic, Fluidstack, and Google. [5]
- He also pegged the contracted cash flow and power demand for the initial 245 MW at River Bend at roughly $7.6 billion in value. [6]
That’s the heart of today’s re-rating: investors aren’t only reacting to headline contract value—they’re reacting to the type of cash flow Hut 8 says it can generate and the counterparties standing behind it.
The deal driving Hut 8 stock: a 15-year, $7.0 billion AI data center lease at River Bend
The market’s enthusiasm traces back to Hut 8’s Dec. 17, 2025 announcement: a 15-year lease agreement with Fluidstack for 245 megawatts (MW) of IT capacity at Hut 8’s River Bend data center campus in Louisiana, with total base-term contract value of $7.0 billion. [7]
Several transaction mechanics matter for investors modeling the stock:
- Lease structure: Hut 8 said the lease is triple net (NNN)—a structure where the tenant typically pays many ongoing property costs—often viewed as supportive of steadier net operating economics. [8]
- Escalator: The base term includes a 3.0% annual base rent escalator, which can materially lift long-duration cash flow totals. [9]
- Profitability guidance (project-level): Hut 8 projected $6.9 billion of cumulative net operating income (NOI) over the base term—about $454 million per year on average. [10]
- Renewal upside: Three 5-year renewals could bring total contract value to approximately $17.7 billion if exercised. [11]
- Backstop: Hut 8 said Google is providing a financial backstop for obligations over the 15-year base lease term. [12]
- Timeline: The initial data hall is targeted for Q2 2027 commissioning, with additional halls expected later in 2027. [13]
- Expansion optionality: Fluidstack receives a Right of First Offer for up to an additional 1,000 MW of IT capacity in future phases at River Bend (subject to power expansion). [14]
From a market perspective, this is why a single contract can move a stock: it’s not only about the initial 245 MW—it’s about the embedded pipeline and whether Hut 8 can turn “power-first development” into a repeatable machine.
Why this matters beyond Hut 8: AI power + data centers are the new battleground
Hut 8 is part of a broader market rotation where companies with power access and data center development capabilities are being re-valued as AI infrastructure plays. Reuters framed Hut 8’s move as part of the wider trend of former crypto miners pivoting toward AI infrastructure demand. [15]
The River Bend project also has a local grid and economic development angle that investors track because it affects permitting, timelines, and scalability. Entergy’s Dec. 17 release described River Bend as an AI data center campus in Southeast Louisiana, supported by Entergy Louisiana, with an initial 330 MW of utility capacity intended to support 245 MW of critical IT load. [16]
Entergy also described the project as up to a $10 billion Phase I investment and provided job and construction estimates—details that can matter when markets assess project momentum and political/regulatory support. [17]
How big can this get? The “expansion math” behind the bullish takes
A key reason analysts are comfortable pushing price targets higher is the multi-layer expansion runway embedded in the announcements.
Barron’s coverage of the Dec. 17 announcement said the partnership structure included (1) additional capacity rights at River Bend and (2) options to develop additional capacity across multiple U.S. sites. [18]
Investor’s Business Daily (IBD) summarized the potential expansion figure as reaching 2,295 MW when combining the initial contracted capacity and expansion options described in the broader partnership framework. [19]
Whether Hut 8 ultimately realizes those numbers depends on execution, power buildout, and customer demand. But from a valuation lens, “MW under contract” and “MW with credible optionality” are increasingly the unit metrics driving re-ratings across the AI data center trade.
Hut 8’s business mix: from crypto roots to an “energy infrastructure platform”
Hut 8 still gets tagged as a “Bitcoin miner” in many market headlines—and it historically was—but its corporate messaging and segment reporting increasingly emphasize an integrated platform spanning power, digital infrastructure, and compute.
Reuters’ company profile describes Hut 8 as an energy infrastructure platform with segments including Power, Digital Infrastructure, Compute, and Other, aligning with the market’s updated framing of the company. [20]
This matters for Hut 8 stock because it changes which peer group investors use when thinking about multiples: crypto miners tend to trade on hash price and BTC cycle sensitivity; AI data center infrastructure plays often trade on long-dated contracted cash flow, development pipelines, and capital cost discipline.
Forecasts and analyst outlook: targets are rising, but the range is still wide
Street price targets and ratings (consensus view)
On Dec. 22, MarketBeat’s compilation showed Hut 8 carrying a consensus “Buy” rating, with an average 12‑month price target around $53.76, and a range from $25 (low) to $80 (high), based on its tracked analyst set. [21]
Benchmark’s newly published $85 target (picked up in today’s coverage) effectively pushes the “ceiling” higher than that snapshot, underscoring how quickly targets are being revised as the River Bend deal gets digested. [22]
Fair value-style valuation takes (fundamental narrative)
A separate style of analysis comes from Simply Wall St, which published a Dec. 22 note explicitly reassessing Hut 8 after the Fluidstack lease announcement.
Simply Wall St said Hut 8 closed at $44.12 and described a “most popular narrative” implying roughly 21.4% undervaluation, with a “narrative fair value” near $56 (and a displayed fair value result of $56.13). [23]
But it also flagged a nuance worth noting: the outlet said analysts had trimmed average fair value estimates (roughly $58 to $56) even as “headline price targets” moved up into the $60–$65 range—an example of how different valuation frameworks can disagree during fast-moving story shifts. [24]
Earnings outlook: what the next few quarters could hinge on
While the AI lease headlines dominate, Hut 8 remains in a transition phase where reported financials can look messy (investment cycles usually do). According to MarketBeat’s earnings summary:
- Hut 8’s Q3 2025 EPS was -$0.07, beating a consensus estimate of -$0.16. [25]
- Quarterly revenue was reported at $80.72 million, above the $64.70 million consensus estimate shown there. [26]
- MarketBeat’s page also showed an earnings-path expectation that EPS could improve from about ($0.53) to $0.33 “next year” (as presented in its dataset). [27]
- The next earnings date was listed as estimated March 2, 2026 (based on past schedules). [28]
For Hut 8 stock, the key question is not just “beat or miss” on quarterly EPS—it’s whether management can translate the AI pipeline into (1) measurable progress milestones, (2) financing closes, and (3) de-risked delivery timelines that investors can underwrite.
Technical analysis on Dec. 22: Strong Buy signals, but momentum looks overbought
Momentum traders also have Hut 8 on their screens. Investing.com’s technical summary for Hut 8 showed “Strong Buy” across multiple timeframes (daily, weekly, monthly) as of Dec. 22. [29]
However, the same page flagged a classic caution light: RSI(14) around 75, marked as overbought. [30]
A quick translation for non-technical readers: “overbought” doesn’t mean the stock must fall—it means the rally has been fast enough that pullbacks become more likely, especially in a name that can swing with both AI infrastructure sentiment and crypto-linked risk appetite.
Key risks to watch in Hut 8 stock after the rally
Hut 8’s Dec. 22 surge is fueled by legitimate catalysts—but it’s also the kind of setup where risks matter because expectations get baked into the price quickly.
Execution and timeline risk. River Bend’s first delivery is targeted for Q2 2027, which means markets are pricing multi-year buildout execution today. [31]
Financing and cost of capital. Hut 8 said project-level financing could reach up to 85% loan-to-cost, expected to be funded/underwritten by major banks, subject to definitive agreements and closing conditions. [32]
Customer concentration and counterparty complexity. Analysts explicitly point to the multi-party structure (Anthropic, Fluidstack, Google) as a strength—but it also adds layers of dependency and coordination. [33]
Power and regulatory exposure. Simply Wall St flagged that sustained Bitcoin weakness or regulatory backlash against fossil-fuel-based power could complicate the company’s expansion ambitions. [34]
Volatility remains the baseline. Reuters noted Hut 8’s shares had already risen sharply this year even before the latest leg higher, highlighting how quickly sentiment can flip in this corner of the market. [35]
What investors are watching next (and why it matters for HUT)
As of Dec. 22, the Hut 8 story is being reframed in real time. The next catalysts are likely to be execution proof points more than additional hype:
- Financing milestones and definitive documentation tied to the River Bend buildout. [36]
- Construction progress and any updated delivery guidance toward the 2027 commissioning schedule. [37]
- Power expansion clarity (utility capacity scaling is central to the expansion optionality investors are now paying for). [38]
- Earnings and segment disclosure as the company’s “energy infrastructure” narrative becomes measurable in reported numbers, with the next report window currently tracked around March 2026 on earnings calendars. [39]
Hut 8 stock is trading like a company that just got reclassified by the market—from “crypto-adjacent volatility” to “AI infrastructure optionality.” The next phase is where markets demand receipts: signed expansions, on-time delivery, and financing that doesn’t dilute the thesis.
References
1. www.investing.com, 2. www.marketbeat.com, 3. www.investing.com, 4. www.tipranks.com, 5. www.investing.com, 6. www.investing.com, 7. www.prnewswire.com, 8. www.prnewswire.com, 9. www.prnewswire.com, 10. www.prnewswire.com, 11. www.prnewswire.com, 12. www.prnewswire.com, 13. www.prnewswire.com, 14. www.prnewswire.com, 15. www.reuters.com, 16. www.entergy.com, 17. www.entergy.com, 18. www.barrons.com, 19. www.investors.com, 20. www.reuters.com, 21. www.marketbeat.com, 22. www.investing.com, 23. simplywall.st, 24. simplywall.st, 25. www.marketbeat.com, 26. www.marketbeat.com, 27. www.marketbeat.com, 28. www.marketbeat.com, 29. www.investing.com, 30. www.investing.com, 31. www.prnewswire.com, 32. www.prnewswire.com, 33. www.investing.com, 34. simplywall.st, 35. www.reuters.com, 36. www.prnewswire.com, 37. www.prnewswire.com, 38. www.entergy.com, 39. www.marketbeat.com
