Hut 8’s $7B AI Data Center Deal with Fluidstack Sends Stock Target Soaring to $85

A crypto miner just rewired its future. Hut 8's blockbuster $7 billion partnership with Fluidstack isn't just a pivot—it's a full-scale assault on the AI infrastructure race, and Wall Street is scrambling to adjust its price targets.

From Bitcoin Rigs to AI Compute Power

The deal flips the script. Instead of just burning energy for digital gold, Hut 8 is now leasing its massive data center capacity to Fluidstack for artificial intelligence workloads. It's a classic case of repurposing existing infrastructure for the market's hottest commodity: raw compute power for AI models.

The Street Takes Notice

Analysts didn't just nod in approval—they slammed the 'buy' button. The new $85 stock target represents a staggering vote of confidence, signaling a fundamental re-rating of the company's value proposition. One analyst's note reportedly read, 'They've effectively monetized their power contracts twice—once for crypto, now for AI.' Talk about financial engineering.

A New Blueprint for Miners?

This move could chart a course for the entire sector. As Bitcoin's halvings squeeze pure-play mining margins, diversifying into high-demand compute services like AI offers a lucrative hedge. It turns volatile crypto assets into a steady, high-margin recurring revenue stream. Other miners are undoubtedly watching—and taking notes.

The Bottom Line

Hut 8 isn't abandoning crypto; it's leveraging its core competency in large-scale, energy-intensive operations to capture a slice of the AI boom. The $7 billion figure isn't just a headline—it's a statement of intent that blurs the line between crypto infrastructure and the broader tech ecosystem. Just another day where a 'crypto stock' outmaneuvers traditional tech players, leaving fund managers who dismissed the sector frantically updating their spreadsheets—likely while paying a hefty fee for the privilege.

TLDR

• Hut 8’s $7B AI data center deal secures long-term cash flow and growth potential.
• Benchmark raised Hut 8’s target to $85, reflecting strong institutional shift.
• Google’s payment backstop minimizes risk for Hut 8 in its AI data center venture.
• Hut 8’s $17.7B AI contract value potential includes expansion and renewal options.

Benchmark recently raised its price target for Hut 8 (HUT) to $85, up from $77, following the company’s significant agreement with Fluidstack. The deal involves a $7 billion, 15-year lease for Hut 8’s River Bend AI data center in Louisiana. The deal’s structure has attracted attention from analysts, as it marks a shift in Hut 8’s business strategy from a crypto-first operation to a more diversified digital infrastructure platform. This MOVE is expected to have lasting effects on Hut 8’s financial outlook, with analysts seeing a 93% upside from the current stock price.

Benchmark’s Optimistic Outlook for Hut 8

Mark Palmer, an analyst at Benchmark, pointed out that the deal’s structure and the involvement of a high-quality counterparty, Google-backed Fluidstack, set this deal apart from other recent AI agreements. Palmer raised his price target for Hut 8 to $85, suggesting the stock could see considerable upside based on the strength of the deal.

“The transaction combines superior deal economics, long-dated cash flows, and multiple layers of embedded expansion optionality,” Palmer noted. These factors, he argues, position Hut 8 to benefit from its strategic move into AI and digital infrastructure.

Hut 8’s ability to negotiate favorable terms without the need for warrants or equity sweeteners—unlike some competitors in the space—also adds confidence to its future prospects. This approach has drawn positive attention from analysts, signaling that Hut 8 is moving into an institutional-grade digital infrastructure model.

River Bend Deal Enhances Hut 8’s Institutional Appeal

The $7 billion deal signed last week between Hut 8 and Fluidstack represents a major shift in Hut 8’s business model. Rather than focusing solely on cryptocurrency mining, Hut 8 is now embracing the growing demand for AI infrastructure. The deal provides Hut 8 with long-term, investment-grade-backed cash flows, thanks to the involvement of Fluidstack, which is backed by Google. The deal includes multiple layers of expansion options that could significantly increase its value. These options, including three five-year renewal opportunities, could bring the total contract value to as much as $17.7 billion, according to Palmer’s analysis.

The @Hut8Corp River Bend DC Campus is truly one of a kind… giga-campus potential, low-latency & up to 2,988 acres of land!!!$HUT https://t.co/T77lkHUuPO pic.twitter.com/v0CntksLzq

— McNallie Money (@McnallieM) December 21, 2025

Hut 8’s deal timing also stands out. The company resisted the temptation to rush into AI infrastructure deals amid the current land grab for resources in this sector. Instead, Hut 8 took a more measured approach, securing a deal that met its internal return hurdles and strategic criteria. Palmer noted that this careful timing allowed Hut 8 to lock in favorable terms, giving the company a stronger foundation moving forward.

Strategic Benefits of the AI Data Center Lease
The River Bend lease agreement has given Hut 8 access to valuable AI-ready power infrastructure. Benchmark values the initial 245 MW tranche of the deal at around $7.6 billion, reflecting the scarcity and demand for such resources in today’s market. The involvement of a Google-backed counterparty, along with the long-term nature of the agreement, reduces Hut 8’s exposure to market volatility, making the deal more attractive from a risk management perspective.

This deal reflects Hut 8’s broader strategy of becoming a more diversified player in the digital infrastructure market. By securing long-term, investment-grade contracts, Hut 8 is positioning itself as an institutional-grade provider of AI and digital infrastructure services. The company’s strategy appears to be paying off, as analysts such as Palmer have upgraded their outlook for Hut 8’s stock, citing the potential growth and stability offered by the River Bend lease.