Investment firm Benchmark raised its price target for Hut 8 to $85 from $78 Monday.
The move followed the bitcoin miner's $7 billion data center lease announced last week.
Analyst Mark Palmer maintained a buy rating and said the new target suggests 93% upside from Friday's close of $44.12.
Hut 8 shares rose 14% Monday to close at $50.39.
What Happened
Hut 8 signed a 15-year lease with Fluidstack on December 17 for its River Bend data center in Louisiana.
The agreement covers 245 megawatts of capacity with a base contract value of $7 billion.
Palmer said the deal stands apart from recent AI infrastructure agreements due to its structure and counterparties.
The lease is triple net, meaning the tenant pays operating expenses including maintenance, insurance, and taxes.
This structure provides Hut 8 steadier income while reducing risk from unexpected costs.
The agreement includes a 3% annual rent escalator to protect against inflation.
Google provides a payment backstop, meaning it would cover payments if the main tenant defaults.
Benchmark valued the initial 245 MW tranche at approximately $7.6 billion based on contracted revenue and scarcity of AI-ready power.
Three five-year renewal options could bring total contract value to $17.7 billion.
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Why It Matters
The deal marks Hut 8's shift from crypto mining to AI infrastructure.
Palmer noted the company avoided issuing equity or warrants, common features in comparable transactions.
This allows Hut 8 to maintain full economic ownership without dilution.
Cantor Fitzgerald raised its Hut 8 target to $72 from $64 last week.
Canaccord lifted its target to $62 from $54.
Hut 8 manages 1.2 gigawatts of energy capacity across North America.
The company ranks fourth among bitcoin miners with a market capitalization of approximately $5.4 billion.
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