Benchmark sees 'long pathway for growth' in Hut 8, raises target to $165 on $16.8 billion AI data center deals

What happened

Benchmark increased its price target for Hut 8 Mining Corp. to $165 per share, pointing to $16.8 billion worth of AI data center contracts and the commercialization of its Beacon Point project.

Confirmed

Global impact / market context

Higher target reflects expectations that AI‑related mining demand will boost Hut 8’s revenue and cash flow, potentially improving profitability and making the stock more attractive to investors seeking exposure to both crypto mining and AI infrastructure.

Analyst inference

The AI data‑center market is expanding rapidly as companies invest billions to train large language models, increasing electricity demand and creating new revenue streams for miners that can supply low‑cost, carbon‑efficient power.

Analyst inference

What to watch

1. Progress on securing and deploying the $16.8 billion AI data‑center contracts, which will determine how quickly Hut 8 can scale mining capacity and capture higher margins. Proposed
2. Commercial rollout of the Beacon Point project, as successful commercialization could diversify revenue beyond Bitcoin mining and reduce reliance on crypto price swings. Proposed
3. Regulatory developments around crypto mining and AI data‑center energy use, since stricter rules could affect operating costs and the feasibility of expanding Hut 8’s facilities. Analyst inference

Affected assets

• BTC — Bitcoin

Evidence

• theblock.co