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<h3 id="key-takeaways">Key Takeaways</h3><ul><li>Benchmark analyst Mark Palmer increased the HUT price target from $165 to $195, suggesting approximately 75% potential upside from present trading levels</li><li>The company finalized a second 15-year lease agreement worth $9.8 billion at its Texas-based Beacon Point facility, bringing the tenant’s total contracted power to 704 MW</li><li>Total anticipated average annual net operating income from both Beacon Point leases stands at $1.31 billion</li><li>Shares of HUT were changing hands near $111 during Wednesday trading, marking a roughly 2% daily increase and approximately 120% gains for the year</li><li>Palmer characterizes Hut 8’s business strategy as a “power-first data center REIT with an embedded development machine”</li></ul>Shares of HUT were hovering around $111 during Wednesday’s afternoon session, reflecting an increase of about 2% for the trading day. Year-to-date performance shows Hut 8 climbing nearly 120% — and if Benchmark’s latest $195 projection materializes, investors could see an additional 75% appreciation from current price levels.<a href="https://knockoutstocks.com/stock/HUT" rel="noopener noreferrer nofollow"> <img src="https://knockoutstocks.com/api/stocks/HUT/embed" alt="HUT Stock Card"> Hut 8 Corp., HUT </a>On Wednesday, Benchmark Equity Research announced an upward revision of its Hut 8 price objective from $165 to $195. This adjustment followed the company’s disclosure that its Beacon Point artificial intelligence campus located in Nueces County, Texas, has achieved complete commercialization.Notably, this marks Benchmark’s second upward revision within a fortnight. Just one week prior, Palmer elevated the target from $85 to $165 after integrating Beacon Point’s initial phase into his financial projections.The most recent catalyst stems from a newly signed 15-year lease contract valued at $9.8 billion. <a href="https://coincentral.com/hut-8-hut-stock-jumps-16-after-signing-9-8-billion-ai-data-center-lease/" rel="noopener noreferrer nofollow">Hut 8</a> executed this agreement on Monday with the campus’ current occupant, effectively doubling the tenant’s committed capacity at Beacon Point to 704 megawatts.This development brings the aggregate contract value for the 1-gigawatt facility to $19.6 billion. Hut 8 now commands 949 MW of AI data center infrastructure under binding agreements throughout its entire portfolio.The most recent lease agreement alone is projected to yield $9.8 billion in operational income across its duration, translating to an annual average of approximately $655 million.When factored together with the initial phase, both lease arrangements are anticipated to deliver average yearly net operating income totaling $1.31 billion.<h3 id="innovative-approach-to-data-center-development">Innovative Approach to Data Center Development</h3>Palmer emphasized the remarkable velocity with which Hut 8 executed its strategy — advancing Beacon Point from initial lease agreement to complete commercialization within mere months. Remarkably, the facility achieved full lease occupancy prior to power activation.<blockquote>He characterized the business model as a “power-first data center REIT with an embedded development machine.” The framework operates on a straightforward principle: obtain power access, secure tenant commitments, then arrange construction financing.</blockquote>According to Palmer, the second lease agreement provides additional confirmation of this methodology’s effectiveness, demonstrating the model’s capacity for expansion and replication.<h3 id="digital-asset-holdings-remain-part-of-valuation">Digital Asset Holdings Remain Part of Valuation</h3>Benchmark’s assessment extends beyond property assets. The firm’s valuation incorporates Hut 8’s holdings of 10,278 <a href="https://coincentral.com/bitcoin-btc-price-btc-slips-to-65500-as-oil-prices-and-treasury-yields-climb/" rel="noopener noreferrer nofollow">bitcoin</a>, presently valued at approximately $680 million.Additionally, the analysis includes Hut 8’s 60% ownership position in American Bitcoin, contributing another component to the comprehensive valuation framework.Benchmark maintains its Buy recommendation on HUT shares in conjunction with the elevated price target.The $195 objective reflects the firm’s most current assessment following two consecutive upward adjustments within the same month — both triggered by Beacon Point-related announcements.Hut 8 shares concluded Tuesday’s session around $109 before advancing on Wednesday’s announcement.The post <a href="https://blockonomi.com/hut-8-hut-stock-soars-as-benchmark-raises-price-target-to-195-on-19-6b-texas-ai-campus-lease/" rel="noopener noreferrer nofollow">Hut 8 (HUT) Stock Soars as Benchmark Raises Price Target to $195 on $19.6B Texas AI Campus Lease</a> appeared first on <a href="https://blockonomi.com" rel="noopener noreferrer nofollow">Blockonomi</a>.

Hut 8 (HUT) Stock Soars as Benchmark Raises Price Target to $195 on $19.6B Texas AI Campus Lease

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