Jefferies Sets $156 Target on Hut 8 Citing Two AI Data Center Leases
Jefferies initiated coverage of Hut 8 with a Buy rating and $156 price target, implying 40% upside, highlighting two credit-enhanced AI data centre leases and proven power management expertise. Hut 8’s 115% revenue growth and River Bend project showcase its shift from Bitcoin mining to AI-driven data centres.
1. Coverage Initiation and Rating
Jefferies placed a Buy rating on Hut 8 with a $156 price target, implying roughly 40% upside from current levels. This marks the firm’s coverage launch for a legacy Bitcoin miner pivoting to AI data centres.
2. AI Data Centre Leases
The firm highlighted Hut 8’s two AI data centre leases as some of the most credit-enhanced in the industry, leveraging the company’s expertise in power generation and digital infrastructure management. These leases, with high tenant credit standards and durable locations, position Hut 8 to meet strong AI compute demand.
3. Revenue Growth and Strategic Pivot
Hut 8 posted 115% revenue growth, driven by expanding digital infrastructure services. Its River Bend project serves as proof of concept for the strategic transition from Bitcoin mining toward diversified AI-driven data centre operations.