Benchmark just slapped a $165 price target on Hut 8, nearly doubling its previous $85 mark. The catalyst: $16.8 billion in contracted lease value across two hyperscale AI data center projects, with the potential to balloon to $42.8 billion when renewal options are factored in.
The Beacon Point effect
The centerpiece of Hut 8’s transformation is Beacon Point, an AI data center campus in Texas that landed a $9.8 billion, 15-year lease deal announced back in May 2026. That single contract carries an average annual net operating income of roughly $655 million.
The market noticed. Shares surged nearly 30% following the Beacon Point lease announcement on May 6, 2026. Benchmark’s July 14 upgrade suggests the firm believes there’s still significant upside left to capture as the project moves toward full commercialization.
Financing appears solid, too. Hut 8 has secured $4.25 billion from investors for the Beacon Point development, giving the company serious runway to execute on what is an enormously capital-intensive buildout.
