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Lucid Capital Awards Hut 8 Buy Rating Amid AI-Data-Center Pivot
Lucid Capital Markets has launched coverage of Hut 8 Corp. (NASDAQ: HUT) with a buy recommendation and a price target of $226 per share, an 82 % premium to the current $124.44 level and a 683 % rally over the past year.
The recommendation comes despite Hut 8’s continued lack of profitability. The miner posted a negative earnings‑per‑share of $2.90 last year, yet analysts at Lucid argue that the company’s trajectory in the fast‑moving data‑center sector justifies a bullish stance. They point to the firm’s shift from Bitcoin mining to operating AI‑centric data‑center facilities.
The pivot is most evident in recent capital‑raising activity. Hut 8 closed a $4.25 billion senior secured note offering through its wholly‑owned subsidiary, Beacon Point DC LLC. The notes carry a 6.129 % coupon and mature in 2042, and investor demand was strong, with $17 billion in orders.
Proceeds will fund a 352‑megawatt AI data‑center on a 521‑acre site in Nueces County, Texas. The facility is already leased to Nvidia (NASDAQ: NVDA), underscoring a strategic partnership with a leading GPU manufacturer.
The company’s stock has surged 143 % this year, trading at $124.44. The rise reflects investor enthusiasm for the new business model, even as the firm remains unprofitable.
Lucid Capital notes that Hut 8’s evolution from a pure Bitcoin miner to a digital‑infrastructure landlord is still in early stages. The analysts emphasize execution as the key factor, expecting the company to deliver on the promise of additional AI sites in the coming years.
Industry context supports the rating. The global AI‑data‑center market has expanded rapidly, driven by demand for high‑performance computing and GPU‑based workloads. Nvidia’s involvement as a tenant signals confidence in the facility’s design and capacity.
The bond sale’s terms—6.129 % interest and a 2042 maturity—are competitive in the current low‑rate environment. The large order book suggests that institutional investors view the Texas project as a long‑term, stable cash‑flow generator.
Hut 8’s transition aligns with broader industry trends. Several former mining firms are repurposing their infrastructure for AI and data‑center services, motivated by high operational costs of mining and the growing profitability of AI workloads.
While earnings remain negative, revenue is improving. In Q1 2026, Hut 8 reported $71 million in revenue, up from $21.8 million a year earlier. The growth, coupled with the Texas lease, supports the view that the company is moving toward a sustainable business model.
Lucid Capital’s buy rating is not the only positive coverage. Other analysts have issued buy or hold recommendations, reflecting a consensus that Hut 8’s pivot is credible.
The company’s stock performance and bond sale underscore the market’s willingness to back a firm redefining its core operations. Investors will continue to monitor the execution of its AI‑data‑center strategy, the performance of the Texas facility, and the broader shift of the crypto‑mining sector.
In summary, Lucid Capital’s new rating and target reflect confidence in Hut 8’s transition to a digital‑infrastructure landlord, supported by a successful bond sale, a lucrative Nvidia lease, and improving revenue trends. The company remains unprofitable, but the market is betting on its future execution.
The recommendation comes despite Hut 8’s continued lack of profitability. The miner posted a negative earnings‑per‑share of $2.90 last year, yet analysts at Lucid argue that the company’s trajectory in the fast‑moving data‑center sector justifies a bullish stance. They point to the firm’s shift from Bitcoin mining to operating AI‑centric data‑center facilities.
The pivot is most evident in recent capital‑raising activity. Hut 8 closed a $4.25 billion senior secured note offering through its wholly‑owned subsidiary, Beacon Point DC LLC. The notes carry a 6.129 % coupon and mature in 2042, and investor demand was strong, with $17 billion in orders.
Proceeds will fund a 352‑megawatt AI data‑center on a 521‑acre site in Nueces County, Texas. The facility is already leased to Nvidia (NASDAQ: NVDA), underscoring a strategic partnership with a leading GPU manufacturer.
The company’s stock has surged 143 % this year, trading at $124.44. The rise reflects investor enthusiasm for the new business model, even as the firm remains unprofitable.
Lucid Capital notes that Hut 8’s evolution from a pure Bitcoin miner to a digital‑infrastructure landlord is still in early stages. The analysts emphasize execution as the key factor, expecting the company to deliver on the promise of additional AI sites in the coming years.
Industry context supports the rating. The global AI‑data‑center market has expanded rapidly, driven by demand for high‑performance computing and GPU‑based workloads. Nvidia’s involvement as a tenant signals confidence in the facility’s design and capacity.
The bond sale’s terms—6.129 % interest and a 2042 maturity—are competitive in the current low‑rate environment. The large order book suggests that institutional investors view the Texas project as a long‑term, stable cash‑flow generator.
Hut 8’s transition aligns with broader industry trends. Several former mining firms are repurposing their infrastructure for AI and data‑center services, motivated by high operational costs of mining and the growing profitability of AI workloads.
While earnings remain negative, revenue is improving. In Q1 2026, Hut 8 reported $71 million in revenue, up from $21.8 million a year earlier. The growth, coupled with the Texas lease, supports the view that the company is moving toward a sustainable business model.
Lucid Capital’s buy rating is not the only positive coverage. Other analysts have issued buy or hold recommendations, reflecting a consensus that Hut 8’s pivot is credible.
The company’s stock performance and bond sale underscore the market’s willingness to back a firm redefining its core operations. Investors will continue to monitor the execution of its AI‑data‑center strategy, the performance of the Texas facility, and the broader shift of the crypto‑mining sector.
In summary, Lucid Capital’s new rating and target reflect confidence in Hut 8’s transition to a digital‑infrastructure landlord, supported by a successful bond sale, a lucrative Nvidia lease, and improving revenue trends. The company remains unprofitable, but the market is betting on its future execution.
