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

Hut 8’s price target has been raised to $32.53 as analysts cite transformative capacity expansion, strategic moves into AI/HPC and diversified energy, increased credit flexibility, and visibility from long-term energy contracts—repositioning the company for sustained growth and improved valuation.

Analyst Commentary

• Bullish analysts are raising price targets due to Hut 8 advancing 1.5GW of pipeline capacity into the development phase and expanding its platform potential to 2.5GW across 19 sites, signifying transformative growth in scale and digital infrastructure.
• The company’s accelerated pivot toward diversified energy and AI/high-performance computing (HPC) opportunities is viewed positively, enhancing optionality and value creation prospects.
• The recent increase in Hut 8’s credit facility with Coinbase from $65M to $130M is considered strategic, doubling non-dilutive capital and improving balance sheet flexibility to execute new opportunities and secure more favorable financing terms.
• The five-year capacity contracts signed with IESO are highlighted by Bullish analysts as positive, providing long-term visibility and reliability to energy sourcing.
• The upcoming merger with Gryphon Mining's carved-out BTC business is seen as a catalyst for revaluing the company from a sum-of-the-parts perspective, resetting the baseline for valuation and supporting upward revisions to price targets.

What's in the News

• Hut 8 announced the development of four new sites across the US, adding 1,530 MW of capacity under development, expected to bring total platform capacity under management to over 2.5 GW across 19 sites; the new classification of "Capacity Under Development" reflects projects progressing with signed land/power agreements and ongoing commercialization efforts (Key Developments, 2025-08-26).
• The company provides a detailed update on its development pipeline, with 6,815 MW under diligence, 1,255 MW under exclusivity, 1,530 MW under development, and 1,020 MW already commercialized, amounting to 10,620 MW of total potential capacity (Key Developments, 2025-08-26).
• Hut 8 terminated its prior At-The-Market (ATM) equity offering program with 40% capacity unutilized, signaling a disciplined approach to equity issuance (Key Developments, 2025-08-26).
• Hut 8 was dropped from several major Russell indexes at the end of June 2025, including the Russell 3000E, Microcap, and Value Benchmark Indexes (Key Developments, 2025-06-28/30).
• B. Riley raised its price target on Hut 8 to $26 from $25, maintaining a Buy rating and citing the company's strong development pipeline despite a soft Q2, supported by recent expansions in its power pipeline (B. Riley, 2025-08-08).

Valuation Changes

Summary of Valuation Changes for Hut 8

• The Consensus Analyst Price Target has significantly risen from $28.60 to $32.53.
• The Future P/E for Hut 8 has significantly risen from 33.78x to 38.34x.
• The Net Profit Margin for Hut 8 remained effectively unchanged, moving only marginally from 18.32% to 18.07%.