Long-Term Energy And AI Will Advance Future Despite Bitcoin Risks

Analysts raised Hut 8’s price target to $28.60 due to its expanded U.S. development pipeline, enhanced power infrastructure, improved funding through a doubled credit facility, and greater operational stability, reflecting higher long-term growth expectations.

Analyst Commentary

• Bullish analysts cite Hut 8’s expansion of its U.S. development pipeline, with four new sites totaling 1.53 GW added, more than doubling platform potential and accelerating diversification into energy and digital infrastructure, including AI/high-performance computing.
• Several analysts highlight the strong and growing power pipeline as a core reason behind target increases, despite recent operational softness.
• The doubling of Hut 8’s credit facility with Coinbase from $65M to $130M is seen as strategically significant, providing more non-dilutive capital and improving the cost of capital to fund further growth.
• The recent five-year capacity contracts with IESO are viewed positively for securing future operational stability.
• Positive sector read-through from Core Scientific’s acquisition by CoreWeave and HUT’s S-4 filing regarding a merger with Gryphon Mining’s BTC business is driving higher valuation scenarios and resetting sum-of-the-parts assessments.

What's in the News

• Hut 8 announced plans to develop four new sites across the U.S., totaling 1,530 MW of capacity under development, with the aim of exceeding 2.5 GW platform capacity upon commercialization, advancing its standing in high-performance computing and energy-intensive technologies (Key Developments, 2025-08-26).
• The company introduced a new “Capacity Under Development” category for late-stage projects and reported a robust development pipeline totaling over 10.6 GW, highlighting strategic diversification and disciplined equity issuance with the termination of its prior ATM program (Key Developments, 2025-08-26).
• Vega, described as the world’s largest single-building Bitcoin mining facility by nameplate hashrate, was energized with 205 MW capacity and proprietary liquid cooling technology capable of supporting advanced ASIC and HPC workloads (Key Developments, 2025-06-30).
• Hut 8 was removed from multiple Russell indexes, including the Russell 3000E, Microcap, and their value benchmarks (Key Developments, 2025-06-28, 2025-06-30).
• B. Riley raised its price target for Hut 8 to $26 (from $25), citing a strong development pipeline and expanded power capacity despite a soft Q2, and maintained a Buy rating (Periodicals, 2025-08-08).

Valuation Changes

Summary of Valuation Changes for Hut 8

• The Consensus Analyst Price Target remained effectively unchanged, moving only marginally from $28.13 to $28.60.
• The Future P/E for Hut 8 has significantly fallen from 44.93x to 33.78x.
• The Discount Rate for Hut 8 remained effectively unchanged, moving only marginally from 8.84% to 8.77%.