Benchmark Hikes Hut 8 Corp. (HUT) Price Target amid $7B Data Center Deal

Hut 8 Corp (NASDAQ:HUT) is one of the best cryptocurrency and blockchain stocks to buy now. On December 19, Benchmark raised the stock’s price target to $85 from $78. The price target hike is in response to the company signing a $7 billion data center deal, which is expected to strengthen its digital infrastructure business in addition to its crypto-focused business.

The company has signed a 15-year, $7 billion lease agreement with Fluidstack for 245 megawatts of IT capacity at its River Bend data center. Google is to provide the financial backstop covering obligations during the 15-year lease term. In addition to the growing digital infrastructure business, the analyst also views the company’s stake in Bitcoin mining company American Bitcoin as a positive going forward.

“The transaction combined superior deal economics relative to peer deals, long-dated, investment-grade-backstopped cash flows, and multiple layers of embedded expansion optionality across three counterparties – Anthropic, Fluidstack, and Google,” Palmer noted.

Likewise, research firm Keefe, Bruyette & Woods has increased Hut 8’s price target to $55 from $30 while reiterating a Buy rating. The price target hike is in response to what the research firm bills as strong execution on the high-performance computing colocation deal. The research firm expects the company to secure additional Google TPUs owing to the net expansion potential at River Bend.

Hut 8 Corp. (NASDAQ:HUT) operates an energy-first infrastructure platform, building and managing large-scale data centers for power-hungry applications such as AI and Bitcoin mining, offering services ranging from power generation and digital infrastructure to compute power (GPU/CPU) and managed data center services.

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Disclosure: None. This article is originally published at Insider Monkey.