Reports emerged that Nvidia is the mystery tenant behind Hut 8's landmark Texas data center leases, a revelation that has reshaped how Wall Street thinks about a company that, not long ago, was known primarily for mining Bitcoin. At $81.05, the stock sits far below nearly every analyst target on the Street, raising a pointed question: is this a screaming discount or a market that doesn't yet trust the pivot?
A $50 Billion Headline That Rests on a $19.6 Billion Foundation. Hut 8's one-gigawatt Beacon Point campus carries a base-term contract value of $19.6 billion over 15 years, rising to as much as $50.2 billion if renewal options are exercised.
The $50 billion headline needs a footnote, though, because the contracted base is both smaller and already public. Investors should understand that more than half the deal's value depends on renewals decades away. Still, CEO Asher Genoot noted Hut 8 had zero contracted AI revenue about a year ago — now he counts roughly $27 billion in contracted AI revenue and about $1.75 billion in annualized EBITDA (earnings before interest, taxes, depreciation, and amortization — a rough measure of cash-generating power).
Wall Street Is Wildly Bullish, Yet the Stock Keeps Sliding. Multiple banks — including Piper Sandler, Benchmark, Clear Street, Lucid Capital, and others — have raised price targets into roughly the $143–$245 band.
Morgan Stanley launched coverage with an Overweight rating and a $263 target, calling current weakness "a mispricing."
The consensus across 18 analysts is "Strong Buy" with an average target of $161.78 — nearly double the current price. Yet the stock has swung between the low $80s and $113 in recent weeks, reflecting deep uncertainty about execution risk, capital costs, and whether a debt-to-equity ratio of 30.65 is sustainable for a company still posting net losses.
A Small Legal Settlement Clears the Rearview Mirror. Hut 8 agreed to a $2.35 million settlement of a securities class-action tied to its 2023 merger with U.S. Bitcoin Corp. The company denies wrongdoing but views the settlement as removing legal uncertainty.
The payout is tiny next to Hut 8's $4.25 billion in bond financing and multi-billion dollar lease commitments , but it closes a chapter that once triggered a 23% single-day stock drop.
The Real Risk: Building a Power Empire While Burning Cash. Net loss for Q1 2026 was $253.1 million , and revenue has only recently begun scaling. The company's bet is straightforward — secure massive power capacity first, sign long-term tenants second — but the gap between contracted future revenue and today's cash flow is where investor anxiety lives.