The post Benchmark hikes Hut 8 target to $85 following AI data center deal appeared on BitcoinEthereumNews.com.

Benchmark, the Wall Street broker, lifted its price target on Hut 8 to $85 from $78. The firm believes the new AI data center deal between Hut 8, Anthropic, and Fluidstack is a cash flow booster. Analyst Mark Palmer kept a buy rating and raised his price target to $85 from $78. The revision suggests around 93% upside from Friday’s close of $44.12. Deal structure sets Hut 8 apart, says Benchmark On Monday, Palmer said the Hut’s deal stands apart from recent AI data center agreements. It has a better structure, counterparties, and cash-flow quality. At the time of writing, HUT shares rose by 14.21% and closed trading at $50.39. On December 17, Hut 8 signed a deal with Fluidstack for its River Bend data center located in Louisiana, US. The size of the deal is around $7 billion spread over the next 15 years. The shares of Hut 8 (NASDAQ: HUT) rose by 21% on the news, as reported previously by Cryptopolitan. Palmer explained, “The transaction combined superior deal economics relative to peer deals, long-dated, investment-grade-backstopped cash flows, and multiple layers of embedded expansion optionality across three counterparties.” The Benchmark analyst pointed in particular to the 15-year, triple net lease covering the River Bend campus. In a triple net agreement, the tenant pays expenses like upkeep, insurance, and taxes. This setup gives Hut 8 steadier rental income. It also reduces Hut 8’s risk of unexpected costs during the lease. The deal includes a 3% annual rent escalator. This allows Hut’s cash flows to grow each year and helps protect returns against inflation. The deal also benefits from a payment backstop provided by Google. Palmer said this lowers the risk because Google would cover payments if the main tenant fails to do so. This allows Hut 8 to maintain full…

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Filed under: News - @ December 23, 2025 1:26 pm