BlockBeats news, on February 27, Benchmark reaffirmed its "Buy" rating and $85 price target for Hut 8, noting 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 his report that, although the fourth-quarter performance was impacted by unrealized losses on Bitcoin, the more critical development is that Hut 8 is steadily transitioning into a "power-first digital infrastructure platform," securing a clearer path to long-term contracted cash flows.
Hut 8 reported a net loss of $301.8 million for the fourth quarter, primarily due to $401.9 million in unrealized losses on digital assets. Revenue increased nearly threefold year-over-year to $88.5 million, driven by growth in hashing power income.
Palmer continues to view River Bend’s 15-year, 245-megawatt IT lease agreement with Fluidstack, backed by Google’s financial support, as central to the investment thesis, with the $7 billion base-term agreement helping to align Hut 8’s valuation with infrastructure-sector multiples.
Benchmark’s $85 price target is based on a sum-of-the-parts analysis, including the discounted cash flow valuation of River Bend leasing, the probability-weighted valuation of an additional 1,000 MW under the right of first refusal, the market value of Hut 8’s 60% stake in American Bitcoin, and its Bitcoin holdings.