Hut 8 Stock Soars on Nvidia Lease Deals and Beacon Point Commercialization
Hut 8 Corp.'s (NASDAQ:HUT) stock price has been on the rise, increasing by 6.36% amid bullish sentiment for Bitcoin mining growth prospects.
The company's recent announcements have sparked significant interest among Wall Street analysts and traders alike. Hut 8 has signed long-term leases with Nvidia for its entire 1-gigawatt Texas data center, with options totaling up to $50 billion over 30 years. This move effectively turns a speculative build into a campus backed by one of the strongest names in AI.
Beacon Point, HUT's 1-gigawatt AI campus in Nueces County, Texas, has also been fully commercialized, with a second 15-year, $9.8 billion lease signed for 352 MW of IT capacity with an investment-grade tenant. This doubles contracted capacity at Beacon Point to 704 MW and anchors the site with long-term, high-quality cash flows.
As a result of these developments, several major financial institutions have upgraded their ratings on Hut 8 stock. Piper Sandler raised its price target from $127 to $143, while Benchmark lifted its target to $195 after the second phase of Beacon Point commercialization. Morgan Stanley initiated HUT at Overweight with a $263 target, arguing that the Street is mispricing miners-turned-HPC providers relative to the size of their hyperscaler-style deals.