Another crypto stock upgraded at Roth Capital

Roth Capital Markets analyst Darren Aftahi raised his 12-month price target for Hut 8 (Hut 8 Stock Quote, Chart, News, Analysts, Financials NASDAQ:HUT) to $31.00 while maintaining a “Buy” rating in an Aug. 26 report, citing new U.S. capacity developments that could more than double the company’s total power.

Roth initiated coverage on June 5 with a $25.00 target.

Hut 8, a digital infrastructure company focused on Bitcoin mining and high-performance computing, including AI, was formed in November 2024 through a merger with U.S. Data Mining Group. It operates about 1,020 megawatts across 15 sites in the U.S. and Canada.

Aftahi said Hut 8 is moving four sites in Louisiana, Texas and Illinois from its exclusivity pipeline to active development, representing about 1.53 gigawatts of capacity. If completed, total power would rise to roughly 2.55GW from 1.02GW today, 90% of which is contracted. He said the locations sit in regions with rising HPC/AI demand and near-term access to utility power.

“Once built, this would position HUT as one of the largest owners of power in the industry and broaden its geographic footprint, which is primarily concentrated in Canada,” he said.

Funding could draw on the balance sheet, roughly 10,278 bitcoin, existing credit facilities, a new at-the-market program and project financing tied to tenant agreements. Aftahi estimates about 1GW of CITL could be directed to HPC workloads, supporting roughly $1.3-billion in annual Adjusted EBITDA at peer averages, implying site values of $17-billion to $20-billion at current multiples.

He added that Hut 8’s liquid-cooling rack technology could lower build costs if adopted, while the pending agreement with American Bitcoin (via Gryphon Digital Mining) provides a backstop for capacity not suited to HPC/AI. He expects the company to proceed strategically, securing tenants before committing significant capital to full build-outs.

Looking ahead, Aftahi projects Adjusted EBITDA of $120.2-million on $192.6-million of revenue in fiscal 2025, followed by $89.5-million on $355.8-million in fiscal 2026.

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