Hut 8: Transformative 15-Year HPC Colocation Deal and AI-Driven Expansion Underpin Buy Rating and $55 Target

Analyst Gregory Lewis from BTIG reiterated a Buy rating on Hut 8 and keeping the price target at $55.00.

Gregory Lewis has given his Buy rating due to a combination of factors tied to Hut 8’s newly announced high‑performance computing (HPC) colocation deal and its broader growth positioning. He highlights that the 15‑year triple‑net lease with Fluidstack for 245 MW of IT load in Louisiana is expected to generate roughly $7 billion in revenue, with exceptionally high EBITDA margins above 90% because most operating costs are passed through to the customer. The agreement also includes multiple extension options that could lift total contract revenue to about $17.7 billion, while reducing operational risk for Hut 8. In addition, the company has granted Fluidstack and Anthropic rights of first refusal over roughly 1 GW of potential expansion capacity at River Bend and further development rights on another ~1.05 GW of capacity, positioning Hut 8 to scale its HPC portfolio quickly as demand from AI and data center customers accelerates.
Lewis also emphasizes Hut 8’s strong financial and strategic footing to fund this growth. The River Bend buildout is expected to require about $2.4–$2.5 billion of capital, with up to 85% anticipated to be financed through external partners, and with Google providing credit support on part of the project, which should lower financing costs and improve overall project economics. He points to Hut 8’s sizable bitcoin holdings—over 10,000 BTC, representing hundreds of millions of dollars in potential liquidity—as an additional funding lever to support the multi‑year ramp of its HPC business. Finally, Lewis notes that Hut 8 is now part of a select group of former bitcoin‑centric firms that have secured large‑scale HPC contracts, and he expects further contract wins as AI and HPC power demand rises, reinforcing his conviction in the company’s long‑term growth prospects and underpinning his Buy rating and $55 price target.

Lewis covers the Energy sector, focusing on stocks such as Frontline, DHT Holdings, and Valaris. According to TipRanks, Lewis has an average return of 12.0% and a 49.29% success rate on recommended stocks.

In another report released yesterday, Benchmark Co. also maintained a Buy rating on the stock with a $78.00 price target.