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Benchmark: Maintains a Buy rating on Hut 8 and sets a price target of $85
Svmuu News: Benchmark has reaffirmed its "Buy" rating on Hut 8 and set a price target of $85, noting that management will focus on execution and delivery in 2026 to advance its AI data center strategy.This statement directly quotes CEO Asher Genoot’s remarks during the company’s fourth-quarter earnings call. Referring to the flagship River Bend campus in Louisiana, Genoot stated, “In 2026, we will be 1000% focused on execution and delivery,” adding that construction is “on track.”Analyst Mark Palmer noted in a Wednesday report that fourth-quarter results were impacted by a paper loss on “Bitcoin,” but more importantly, Hut 8 is steadily transitioning into a power-first digital infrastructure platform with a clearer path to long-term contracted cash flows.Hut 8 reported a net loss of $301.8 million for the fourth quarter, primarily driven by $401.9 million in unrealized digital asset losses. Revenue nearly tripled year-over-year to $88.5 million, with significant growth in computing revenue.Palmer continues to believe that the 15-year, 245-megawatt River Bend IT lease signed with Fluidstack—and backed by Google—is central to the investment thesis. The approximately $7 billion base lease helps align Hut 8’s valuation with infrastructure multiples.Benchmark’s $85 price target is based on what Palmer calls a “sum-of-the-parts” valuation model, which includes the River Bend lease, a probability-weighted valuation of up to 1,000 MW under the right of first refusal, the market value of Hut 8’s 60% stake in American Bitcoin, and its holdings in the “Bitcoin.”As of Thursday morning, Hut 8’s stock price was slightly below $55, down about 1.5% on the day. The stock remains below its recent high of around $66, but has risen more than 300% over the past year, even as theBitcoinhas fallen by about 27% over the same period. (The Block)
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