The analysis firm Benchmark has doubled its price target for the miner Hut 8, raising it from $36 to $78 dollars this October 28th. This revision is based on the revaluation of the Hut 8 AI and Bitcoin strategy, a hybrid business model. The market is re-rating the business model of the miner, according to Benchmark analysts.
Benchmark describes Hut 8’s approach as a “hybrid AI – Bitcoin power play.” The analysis firm highlighted that the competitive advantage arises from repurposing energy and data centers. These were previously dedicated only to Bitcoin mining. The firm had already revised its target from $33 to $36 on August 27th. The new $78 target represents a significant leap. This operational shift is led by CEO Asher Genoot. The plan aims to build 1,530 MW of capacity for AI and high-performance computing (HPC).
The importance of this strategy is diversification. Although Hut 8 maintains a strong position in Bitcoin, with 10,264 BTC on its balance sheet as of June, its model reduces the volatility of crypto cycles. By diversifying revenue with intensive computing and artificial intelligence clients, the company protects itself. This Hut 8 AI and Bitcoin strategy positions it as dual-use infrastructure. Benchmark’s view is that Hut 8 is becoming one of the most versatile energy infrastructure companies in the sector.
Is the $78 Target Too Optimistic for Hut 8?
Benchmark’s opinion is not uniform across the market. In fact, other firms like BTIG raised their target from $18 to $25 dollars. The Wall Street analyst consensus places the price between $25.00 and $34.86. With the stock trading near $38.84, the gap to the $78 target is notable. This optimism from Benchmark is based on projections to 2028. The company forecasts revenues of $767.3 million and an annual growth rate of 76.9%.
Benchmark’s optimism carries significant execution risks. The success of the Hut 8 AI and Bitcoin strategy depends on completing the 1,530 MW plan. Any delay or deviation in capital spending can affect expectations. Although its 10,264 BTC act as a financial cushion, they also add volatility. Investors will be closely watching the upcoming quarterly results. Progress on the AI capacity deployment will be decisive in validating the $78 target.
