Hut 8 Secures $4.25B Bond for 352 MW Texas AI Center, Eyes $226 Price Target
HUT•Lucid Capital Markets initiated coverage of Hut 8 with a Buy rating and $226 price target, implying 82% upside after a 683% share rally in the past year. It raised $4.25 billion through 6.129% bonds maturing in 2042 to develop a 352 MW Texas AI data center leased to Nvidia.
1. Buy Rating and Price Target
Lucid Capital Markets launched coverage of Hut 8 with a Buy rating and a $226 price target, reflecting confidence in its pivot to AI infrastructure. The firm noted the stock’s 683% rally over the past year despite ongoing unprofitability and negative $2.90 EPS.
2. $4.25B Bond Sale Funds AI Data Center
Hut 8 completed a $4.25 billion bond issue at 6.129% interest maturing in 2042, drawing $17 billion in orders. The proceeds will fund construction of a 352 MW data center in Texas that is pre-leased to Nvidia, reinforcing the company’s transition from crypto mining to AI data center landlord.
