Benchmark "Hut 8, raises target price to $78, more than doubles"

U.S. securities firm Benchmark raised its target price for Bitcoin (BTC) miner Hut 8 from $36 to $78, more than doubling it, and maintained a 'Buy' rating.

On the 28th (local time), according to CoinDesk, Benchmark said in a report, "Hut 8 has transformed from a simple Bitcoin mining company into an energy infrastructure company targeting demand from artificial intelligence (AI) and high-performance computing (HPC)," calling it "a flexible 'call-option-like' stock that can bet on growth in both AI and Bitcoin."

Palmer presented a sum-of-the-parts valuation reflecting, as reasons for the target increase, the energy infrastructure expansion pipeline; a 64% stake in U.S. subsidiary American Bitcoin (ABTC); and holdings of 10,264 BTC as of June 30.

He said, "Under the strategy of CEO Asher Genut, who took office in February 2024, Hut 8 is shifting to a model that controls low-cost power infrastructure and supplies power to the most profitable workloads," and added, "It is currently developing a total generation capacity of 1,530 megawatts (MW), centered on AI and HPC data centers."

Benchmark said investors are viewing CEO Genut's strategic shift positively, noting that Hut 8's share price has risen more than fourfold over the past six months. However, it analyzed that "the current market capitalization still falls short of intrinsic value."

It cited the possibility of signing a lease for the River Bend site in Louisiana as a near-term catalyst, and the replicability of the Vega facility model in Texas as a mid- to long-term growth factor.