Hut 8 wins massive price target raise at Roth

In a Sept. 15 report, Roth Capital Markets analyst Darren Aftahi reiterated a “Buy” rating on Hut 8 (Hut 8 Stock Quote, Chart, News, Analysts, Financials NASDAQ:HUT) and raised his price target to $60.00 from $31.00, highlighting progress at affiliate American Bitcoin and Hut 8’s pivot toward high-performance computing and AI infrastructure.

Aftahi said American Bitcoin has scaled to roughly 25 EH/s, likely drawing on capacity Hut recently energized at its Vega site. He described the carve-out structure as “one of the more well thought out” in the sector, enabling American Bitcoin to pursue its own Bitcoin strategy with independent capital sources while Hut provides power and managed services.

“We expect that the power pipeline between HUT and (American Bitcoin) likely stays in the ERCOT region and Alberta CAN for now, leveraging lower cost power,” he added.

For Hut, the near-term focus is on HPC/AI data centers. Aftahi pointed to the company’s 1.5 GW pipeline of sites, including River Bend, Louisiana, which will start with about 300 MW and could expand.

“We believe the furthest along site is River Bend, LA, which begins as ~300MW with the potential to expand, strategically located near multiple power generation sites,” he said. Hut’s in-house liquid cooling rack design, priced at about $400,000 per MW for base shells, could provide flexibility and cost advantages for different tenant requirements.

“We maintain the belief that an announcement of a signed lease agreement for one of its campuses would act as the largest re-rating for shares and kickstart the talks of expanding that deal(s) across additional sites, while maintaining its optionality in ABTC (one-year share lockup),” Aftahi said.

Investor discussions also touched on American Bitcoin’s use of its ATM program, Hut’s timeframes for potential HPC lease agreements or LOIs, and project financing. Management reiterated its intent to keep the balance sheet light on debt, funding new campuses with project financing and potentially asset-backed securities if scale permits. Hut also intends to be measured in ATM usage and can draw on its Bitcoin treasury for borrowings, hedges and sales to fund builds.

Aftahi forecasts Adjusted EBITDA of $120.2-million on $192.6-million in revenue for fiscal 2025, declining to $89.5-million on $355.8-million in revenue in 2026.

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