Benchmark Hikes Hut 8 Corp. (HUT) Price Target amid $7B Data Center Deal

Hut 8 Corp (NASDAQ:HUT) is one of the best cryptocurrency and blockchain stocks to buy now. On December 19, Benchmark raised the stock’s price target to $85 from $78. The price target hike is in response to the company signing a $7 billion data center deal, which is expected to strengthen its digital infrastructure business in addition to its crypto-focused business.

Benchmark Hikes Hut 8 Corp. (HUT) Price Target amid $7B Data Center Deal

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The company has signed a 15-year, $7 billion lease agreement with Fluidstack for 245 megawatts of IT capacity at its River Bend data center. Google is to provide the financial backstop covering obligations during the 15-year lease term. In addition to the growing digital infrastructure business, the analyst also views the company’s stake in Bitcoin mining company American Bitcoin as a positive going forward.

“The transaction combined superior deal economics relative to peer deals, long-dated, investment-grade-backstopped cash flows, and multiple layers of embedded expansion optionality across three counterparties – Anthropic, Fluidstack, and Google,” Palmer noted.

Likewise, research firm Keefe, Bruyette & Woods has increased Hut 8’s price target to $55 from $30 while reiterating a Buy rating. The price target hike is in response to what the research firm bills as strong execution on the high-performance computing colocation deal. The research firm expects the company to secure additional Google TPUs owing to the net expansion potential at River Bend.

Hut 8 Corp. (NASDAQ:HUT) operates an energy-first infrastructure platform, building and managing large-scale data centers for power-hungry applications such as AI and Bitcoin mining, offering services ranging from power generation and digital infrastructure to compute power (GPU/CPU) and managed data center services.

While we acknowledge the potential of HUT to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than HUT and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.