Benchmark, the investment banking firm, has reaffirmed its "buy" rating on the Bitcoin mining operation Hut 8 (NASDAQ: HUT) and increased its price target to $36 from $33, citing the company's rapid expansion into energy infrastructure that could support artificial intelligence (AI) and high-performance computing workloads.
According to Benchmark's senior equity research analyst Mark Palmer, Hut 8's recent initiatives "establish it as one of the largest owners of power that could be used for AI/high-power computing workloads, Bitcoin mining, or other purposes."
Related: What is Bitcoin mining? Explained
On Aug. 26, the Miami-based firm said that it would build 1.53 gigawatts of new capacity at four different US locations. Hut 8 stressed that the facilities would not be used primarily for Bitcoin mining but for providing capacity for wider computing purposes.
More on Bitcoin mining:
Hut 8's 64% stake in American Bitcoin
Palmer said the move showed "a real path to monetization for its burgeoning power pipeline over the next few years."
The strategy reinforces a trend in the mining industry whereby companies are diversifying into AI and other computationally intensive services.
"Ultimately, by decoupling energy infrastructure from mining, Hut 8 will increase its financial flexibility and put itself in a stronger position to execute on growth opportunities at scale while preserving upside exposure to Bitcoin through a 64% stake in American Bitcoin,"Palmer wrote.
That stake is representative of Hut 8's agreement with American Data Center Inc., a company financed by Eric and Donald Trump Jr.
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As per the agreement, Hut 8 contributed its mining equipment to start a new company called American Bitcoin.
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The Trumps have touted American Bitcoin as the "world's largest and most efficient Bitcoin miner."
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American Bitcoin is expected to go public soon.
The HUT stock was trading at $26.37 at press time, up 1.79% a day.
This story was originally reported by TheStreet on Aug 27, 2025, where it first appeared in the MARKETS section. Add TheStreet as a Preferred Source by clicking here.
