Benchmark Reiterates 'Buy' Rating on Hut8 and $85 Price Target
By: theblockbeats.news|2026/02/27 05:00:54
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BlockBeats News, February 27th, Benchmark reiterated its "Buy" rating on Hut 8 with an $85 price target, stating that as the company advances its AI data center strategy, management has positioned 2026 as the "year of execution and delivery."
Benchmark analyst Mark Palmer noted in the report that although the fourth-quarter performance was impacted by unrealized losses on Bitcoin, more importantly, Hut 8 is steadily transforming into a "power-first digital infrastructure platform," gaining a clearer long-term contract cash flow path.
Hut 8 reported a net loss of $301.8 million in the fourth quarter, mainly due to a $401.9 million unrealized loss on digital assets. With hashrate revenue growth, revenue almost tripled year-over-year to $88.5 million.
Palmer continues to view the 15-year, 245-megawatt IT lease agreement signed with River Bend and Fluidstack as the core of the investment thesis, backed by Google's financial support, with around $7 billion of the underlying term agreement driving Hut 8's valuation towards infrastructure-type multiples.
Benchmark's $85 price target is based on a sum-of-the-parts analysis, including the River Bend lease, a probability-weighted valuation of an additional 1,000 megawatts under the preferential rights offering, the market value of Hut 8's 60% stake in American Bitcoin, and its Bitcoin holdings.
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