Why Hut 8 (HUT) Is Down 6.6% After Google-Backed US$7 Billion AI Lease Announcement – And What's Next

• Hut 8 Corp. recently announced it had signed a 15-year, US$7.0 billion lease with Fluidstack for 245 megawatts of AI-focused IT capacity at its River Bend data center campus in Louisiana, including renewal options that could lift the total contract value into the very large billions and a Right of First Offer over up to 1,000 megawatts of future expansion.
• The company also unveiled a partnership with Anthropic and Fluidstack to deploy at least 245 megawatts and potentially up to 2,295 megawatts of AI data center infrastructure, using high-performance clusters for Anthropic and backed by a Google financial guarantee on lease payments, which marks a major reorientation of Hut 8’s role in the AI infrastructure supply chain.
• Next, we’ll examine how this long-term, Google-backed US$7.0 billion lease could reshape Hut 8’s investment narrative around AI infrastructure growth.

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Hut 8 Investment Narrative Recap

To own Hut 8 today, you have to believe its pivot from Bitcoin-centric operations toward long-term, contracted AI and power infrastructure can offset its exposure to Bitcoin price swings and capital-intensive growth projects. The new 15-year, US$7.0 billion, Google-backed Fluidstack lease strengthens the near-term AI data center catalyst, but it also concentrates execution risk at River Bend, where cost overruns, delays, or tenant issues could materially affect future cash flows.

The Anthropic and Fluidstack partnership, which maps out a path from 245 megawatts to potentially 2,295 megawatts of AI data center capacity, is the clearest expression of Hut 8’s Power First thesis. It directly reinforces the shift toward contracted, higher-visibility AI/HPC revenue streams, but it also raises the stakes on Hut 8’s ability to finance, build, and commercialize very large-scale projects without eroding returns through dilution or project-level stress.

Yet behind the headline-grabbing AI pivot, investors should be aware of how much still depends on...

Read the full narrative on Hut 8 (it's free!)

Hut 8’s narrative projects $767.3 million revenue and $140.6 million earnings by 2028. This requires 76.9% yearly revenue growth and a $13.4 million earnings decrease from $154.0 million today.

Uncover how Hut 8's forecasts yield a $56.12 fair value, a 45% upside to its current price.

Exploring Other Perspectives

Four fair value estimates from the Simply Wall St Community span roughly US$24 to US$56.13 per share, showing a wide spread in expectations. Against that backdrop, Hut 8’s heavy dependence on capital intensive projects like River Bend and Vega gives you several very different future earnings paths to consider, so it is worth comparing multiple viewpoints before deciding where you stand.

Explore 4 other fair value estimates on Hut 8 - why the stock might be worth as much as 45% more than the current price!

Build Your Own Hut 8 Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Hut 8 research is our analysis highlighting 3 key rewards and 4 important warning signs that could impact your investment decision.
• Our free Hut 8 research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Hut 8's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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