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▲ Hut 8, Artificial Intelligence (AI) Infrastructure, Bitcoin (BTC)/AI Generated Image
Hut 8 (HUT) has transformed from a Bitcoin (BTC) mining stock into an AI infrastructure stock. Simultaneously, billionaire Daniel Loeb's Third Point has acquired new shares, drawing Wall Street's attention back to the stock.
According to financial news outlet Benzinga on July 2 (local time), Third Point, led by Daniel Loeb, newly purchased 869,563 shares of Hut 8 stock in the first quarter of fiscal year 2026. Benzinga reported that Hut 8 recently shifted its focus from Bitcoin mining-centric operations to high-performance computing (HPC) and AI infrastructure.
Hut 8's recent performance has not yet met market expectations. The company reported a loss of $1.98 per share in the first quarter, underperforming the market's estimated loss of $0.17. Revenue also fell short at $71.01 million, compared to the estimated $81.27 million. However, investor interest is shifting from current performance to AI data center contracts and long-term lease revenues.
Hut 8 announced that it has secured $16.8 billion in contracted lease revenue from two hyperscale AI campuses, based on triple-net and take-or-pay agreements with investment-grade counterparties. Specifically, Phase 1 of the Beacon Point AI data center campus has been commercialized with a 15-year lease for 352 megawatts of IT capacity. According to the company's announcement, the base contract value is $9.8 billion, which could increase to a total of $25.1 billion if all three 5-year extension options are exercised.
The project is designed around NVIDIA's (NVDA) DSX Reference Architecture. American Electric Power, Vertiv Holdings Co., and Jacobs Solutions were also mentioned as supporting entities. Hut 8 also awarded Jacobs Solutions an exclusive engineering, procurement, and construction management contract for the development of a second U.S. AI data center campus.
Wall Street also saw continued target price upgrades. Patrick Moley of Piper Sandler maintained an Overweight rating on Hut 8 and raised his price target from $93 to $127. Gregory Lewis of BTIG maintained a Buy rating and increased his price target from $90 to $115. Subsequently, Greg P. Miller of Citizens raised his price target from $100 to $140, Canaccord Genuity from $70 to $130, and Rosenblatt from $89 to $124, respectively.
However, Hut 8's AI infrastructure bet comes with the burden of large-scale financing. The company priced a $4.25 billion senior secured note offering to fund the development of its 352-megawatt data center in Texas. ETF exposure is also significant. The Bitwise Crypto Industry Innovators ETF (BITQ) holds 5.98% in Hut 8, the Nicholas Crypto Income ETF (BLOX) holds 5.64%, and the State Street SPDR S&P Software & Services ETF (XSW) holds 1.12%, indicating that ETF fund flows could also increase stock price volatility.
[Article Key Summary]
-Hut 8 attracted market attention in Q1 fiscal year 2026 as Daniel Loeb's Third Point newly purchased 869,563 shares.
-Hut 8 is being re-evaluated as an AI infrastructure stock, driven by $16.8 billion in AI campus contracted lease revenue and a base contract value of $9.8 billion for Beacon Point.
-Wall Street target prices have been consistently raised, but the $4.25 billion secured note issuance and ETF fund flows remain factors for volatility.
*Disclaimer: This article is for investment reference only, and we are not responsible for investment losses based on it. The content should be interpreted for informational purposes only.*
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