Benchmark sees Hut 8 becoming a 'power-first data center REIT,' raises target another 18%

What happened

Benchmark raised its price target for Hut 8 Mining, now valuing the company as a “power‑first data‑center REIT” and implying about 75% upside, after the stock has already risen nearly 120% year‑to‑date.

Confirmed

Global impact / market context

The new target suggests analysts see Hut 8’s business model shifting toward a real‑estate investment trust that owns power‑intensive data centers, which could attract investors seeking stable, asset‑backed returns rather than pure cryptocurrency exposure.

Analyst inference

Crypto‑related stocks have rallied sharply this year, and a REIT‑style framing may position Hut 8 to benefit from both the cryptocurrency boom and the demand for income‑generating, infrastructure‑focused assets.

Analyst inference

What to watch

1. Whether Hut 8 formally restructures as a REIT, which would require meeting specific regulatory rules on income distribution and asset ownership. Proposed
2. The company’s ability to secure long‑term, low‑cost electricity contracts, as power costs are a key driver of profitability for mining‑focused data centers. Analyst inference
3. Investor response to the new target, especially if the stock price approaches the implied 75% upside, which could trigger profit‑taking or further buying pressure. Analyst inference

Affected assets

• BTC — Bitcoin

Evidence

• theblock.co