Hut 8 signs $9.8B lease to expand AI data center capacity, Needham raises price target to $145

Hut 8 has secured a $9.8 billion, 15-year lease to fully commercialize its 1-gigawatt Beacon Point AI data center campus in Texas, expanding its contracted IT capacity to 949 MW. This marks a strategic shift from cryptocurrency mining to AI infrastructure, positioning Hut 8 as a key player in AI data center operations. Analyst firm Needham responded positively by reaffirming a "Buy" rating and raising the price target from $128 to $145, reflecting confidence in the company’s growth potential. The expanded portfolio is expected to generate over $1.75 billion in annual net operating income, signaling strong future profitability.