Hut 8 Corp. (HUT) is having quite a Thursday. The Bitcoin miner turned AI infrastructure company is riding a wave of analyst enthusiasm after unveiling one of the more interesting data center deals we've seen lately.
What's Driving the Rally
Three major Wall Street firms published bullish notes on Hut 8 Thursday, and they're all pretty excited about the same thing: Wednesday's announcement of a $7 billion data center project in Louisiana designed to serve AI company Anthropic, with high-performance clusters operated by Fluidstack.
Canaccord Genuity analyst Joseph Vafi affirmed his buy rating and bumped up his price target from $54 to $62. Needham analyst John Todaro also maintained his buy rating with a $60 target. BTIG's Gregory Lewis chimed in as well, keeping his buy rating and $55 price target intact.
Why Analysts Are So Enthusiastic
The structure of this deal is what's getting Wall Street excited. Todaro from Needham said Hut 8 has signed the "most attractive lease yet" for a data center. His confidence comes from three factors: the project timeline looks realistic, Google is backing the deal financially, and the lease terms are exceptionally favorable.
Here's the really interesting part. Google is essentially acting as a financial safety net for the entire project, covering all lease payment obligations during the initial 15-year term. For Hut 8, this means no equity cost, no warrants issued, and no upfront dilution. Vafi from Canaccord called it a "standout outcome" on both pricing and terms.
The project is scheduled for completion in the second quarter of 2027, and it's already getting local political support. Louisiana Governor Jeff Landry has publicly backed the initiative, particularly noting the more than 300 jobs expected to come with it.
The Stock's Response
At the time of publication, Hut 8 shares were trading up 6.15% at $42.63, continuing their momentum from the data center announcement. The simultaneous positive coverage from multiple analysts appears to be amplifying the gains, giving investors multiple reasons to feel confident about the company's pivot from pure Bitcoin mining into AI infrastructure.
