Benchmark maintains a buy rating on Hut 8 with a target price of $85.

Benchmark reiterated its buy rating on Hut 8 and set a price target of $85, noting that management will focus on execution and delivery in 2026 to advance its AI data center strategy. This statement directly quotes CEO Asher Genoot's remarks during the company's Q4 earnings call. Speaking about the flagship River Bend campus in Louisiana, Genoot stated that "2026 will be 1000% focused on execution and delivery," adding that construction is "on schedule." Analyst Mark Palmer noted in a report on Wednesday that while Q4 results were impacted by book losses on Bitcoin, more importantly, Hut 8 is steadily transitioning into a power-first digital infrastructure platform with a clearer long-term contract cash flow path. Hut 8 reported a net loss of $301.8 million in Q4, primarily due to $401.9 million in unrealized digital asset losses. Revenue nearly tripled year-over-year to $88.5 million, with significant improvement in computing revenue. Palmer continues to argue that the 15-year, 245-megawatt River Bend IT lease with Fluidstack, financially backed by Google, is central to his investment argument. The approximately $7 billion base lease helps Hut 8's valuation align with infrastructure multiples. Benchmark's $85 price target is based on what Palmer calls a "piece-for-piece" valuation model, which includes the River Bend lease, a probability-weighted valuation of up to 1,000 megawatts under the first-purchase option, the market value of Hut 8's 60% stake in American Bitcoin, and its Bitcoin holdings. As of Thursday morning, Hut 8 shares were trading slightly below $55, down about 1.5% on the day. The stock remains below its recent high of around $66, but has risen over 300% in the past year, even as Bitcoin has fallen about 27% over the same period. (The Block)