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Investing.com - BTIG raised its price target on Hut 8 Mining Corp. (NASDAQ:HUT) to $25.00 from $15.00 on Tuesday, maintaining a Buy rating as the company transitions toward high-performance computing (HPC) while maintaining Bitcoin exposure. The new target sits within the broader analyst range of $18-$33, with InvestingPro data showing the stock currently trading at $20.33 with a market capitalization of $2.34 billion.
The price target increase comes as Hut 8’s American Bitcoin subsidiary approaches completion of its all-stock merger with Gryphon, expected to close this quarter. Following this restructuring, Hut 8 now hosts ABTC’s mining rigs and collects colocation, management, and shared service fees from the subsidiary. According to InvestingPro analysis, the company is expected to see 40% revenue growth this fiscal year, though profitability remains a challenge. Get access to 8 more exclusive InvestingPro Tips and comprehensive valuation metrics with an InvestingPro subscription.
Hut 8 is focusing on securing its first major HPC contract at its approximately 300 MW River Bend site in Louisiana, which has about 200 MW of IT load capacity. The company has identified approximately 2.6 GW of potential power capacity, which could triple its power infrastructure footprint over multiple years.
Despite pivoting away from direct Bitcoin mining, Hut 8 maintains significant cryptocurrency exposure through its holdings of approximately 10,000 Bitcoin, positioning it as approximately the 10th largest Bitcoin holder among publicly listed U.S. companies.
The new business structure is expected to provide Hut 8 with more predictable revenue streams while maintaining Bitcoin mining exposure through its equity interest in ABTC, according to BTIG’s analysis.
In other recent news, Hut 8 Mining Corp. announced that its four natural gas-fired power plants in Ontario have secured five-year capacity contracts with the Ontario Independent (LON:IOG) Electricity System Operator. These contracts, set to commence on May 1, 2026, were obtained through a competitive auction and involve a joint venture with Macquarie Equipment Finance Ltd. Meanwhile, JMP Securities reiterated its Market Outperform rating for Hut 8 Mining, maintaining a $25.00 price target. The firm expressed confidence in the company’s strategy to become a key supplier of high-performance computing data center capacity.
Additionally, Citizens JMP initiated coverage of Hut 8 Mining with a Market Outperform rating and a similar price target of $25.00. Analysts from Citizens JMP project that Hut 8’s total megawatts deployed could exceed 12 GW over the next five years. They also anticipate that the company’s high-performance computing segment could generate significant revenue. These recent developments highlight Hut 8’s strategic moves in the energy and computing sectors.
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