Benchmark Increases Hut 8 Price Target as Bitcoin Mining Spin-Off and Energy Expansion Take Shape
Benchmark analyst Mark Palmer raised his price target for Hut 8 (HUT) to $36 from $33, while maintaining a buy rating. The upgrade comes ahead of Hut 8’s planned spin-off of most Bitcoin (BTC) mining operations into American Bitcoin (ABTC), a move Palmer says could re-rate the company’s shares.
Hut 8 also announced plans to add 1.53 gigawatts (GW) of new capacity across four U.S. sites in Louisiana, Texas, and Illinois, more than doubling its total power under management to 2.55 GW.
Palmer highlighted that the expansion demonstrates a clear path to monetizing Hut 8’s energy pipeline. The company has secured land and power agreements, started infrastructure development, and is negotiating with potential customers, positioning itself as a pure-play energy infrastructure company.
By separating its mining operations into ABTC, Hut 8 aims to reduce exposure to Bitcoin price volatility, potentially gaining access to cheaper project financing. The company has up to $2.4 billion in liquidity to support growth, including $1.2 billion in Bitcoin holdings, $330 million in credit facilities, and a $1 billion equity program.
Palmer also emphasized that Hut 8 offers investors flexibility, combining exposure to both Bitcoin and the growing artificial intelligence (AI) and high-performance computing (HPC) sectors.
