Key Stats for Hut 8 Stock
- Price change for Hut 8 stock: 10%
- $HUT Stock Price as of Jul. 20: $101
- 52-Week High: $141
- $HUT Stock Price Target: $135
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What Happened?
Hut 8 (HUT) stock jumped on July 20 after CoinDesk reported the company signed a huge new lease for its Beacon Point data center campus in Texas. The deal covers Phase 2 of the project and is worth $9.8 billion over 15 years. It’s with the same investment-grade tenant that already leased Phase 1.
The new agreement adds 352 megawatts of AI computing capacity, built on Nvidia’s data center architecture. That brings the tenant’s total capacity at the site to 704 megawatts, using up the campus’s entire 1-gigawatt power capacity.
Combined, the total contracted value across both phases now sits at $19.6 billion. Shares of Hut 8 stock rose as much as 14% intraday on the news.
The excitement wasn’t limited to Hut 8 either. Other companies in the high-performance computing space moved higher too, with IREN up 15%, Cipher Mining up 11%, and TeraWulf gaining 6.4%.
The timing matters here. AI infrastructure stocks had been sliding for weeks before this announcement.
Investors had grown nervous after Chinese companies released open-source AI models that use less computing power than their Western counterparts.
A report that Meta was considering leasing out its own AI computing capacity added to worries about oversupply in the sector. This lease helped push back against that narrative.
Wall Street responded quickly.
Needham raised its price target on Hut 8 stock to $145 from $128, keeping its Buy rating. The firm pointed to strong lease economics, about $1.86 million per megawatt in net operating income over the 15-year term, numbers that match up well against similar deals from competitors like Cipher and TeraWulf, and beat out APLD and CLSK on the same basis.
Benchmark raised its target to $165, and Lucid Capital Markets started coverage with a Buy rating and a $226 target, pointing to the strong contracted capacity and annual income the deal locks in.
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What the Market Is Telling Us About Hut 8 Stock
The rally in Hut 8 stock signals that investors see this lease as proof that real demand for AI data center capacity is still there, despite recent doubts.
Multiple analysts raising price targets on the same day reinforces that view.
That said, some caution remains. The stock is already up 373% over the past year, and some valuation models suggest it may be trading above fair value at current levels.
There was also a minor distraction from insider selling, including a $1.25 million sale by the company’s Chief Legal Officer, though that hasn’t slowed the broader analyst enthusiasm.
For now, the market appears to be rewarding execution, and Hut 8 stock is benefiting from being first to prove the AI infrastructure demand story is intact.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
