Hut 8 (NASDAQ:HUT) Boosts AI Data Center Capacity with $9.8 Billion Lease, Needham Raises Price Target

• Strategic Pivot to AI: Hut 8 (NASDAQ:HUT) has successfully transitioned its core business from cryptocurrency mining to developing and operating advanced AI data centers, establishing itself as a key infrastructure provider for artificial intelligence applications.
• Analyst Confidence Soars: Analyst firm Needham reiterated a "Buy" rating for Hut 8 and significantly increased its price target to $145.00 from $128.00, signaling strong confidence in the company's strategic direction and growth prospects.
• Major Lease Agreement: Hut 8 secured a second 15-year lease valued at $9.8 billion, fully commercializing its 1-gigawatt Beacon Point AI data center campus in Texas and expanding its total contracted IT capacity to 949 MW.

Hut 8 (NASDAQ:HUT) is a company that has transitioned its business from cryptocurrency mining to developing and operating AI data centers. It builds the large-scale infrastructure needed to power artificial intelligence applications. The company currently has a market capitalization of approximately $11.93 billion, with its stock trading around $105.92.

Reflecting a positive outlook on Hut 8's direction, analyst firm Needham reiterated its "Buy" rating for Hut 8 on July 20, 2026. The firm also increased its price target on the stock to $145.00, a notable rise from its previous target of $128.00. When this analyst action was announced, the stock was priced at $106.62.

This analyst confidence is supported by a significant new agreement. As highlighted by Investors Business Daily, Hut 8 signed a second 15-year lease with an existing customer, valued at $9.8 billion. This deal fully commercializes its 1-gigawatt Beacon Point AI data center campus located in Texas.

The new lease adds 352 megawatts (MW) of IT capacity, bringing Hut 8's total contracted capacity to 949 MW across its portfolio. As a result, the total value of the company's base-term contracts now reaches $26.6 billion. This portfolio is projected to generate an average annual Net Operating Income (NOI) of over $1.75 billion.

Net Operating Income (NOI) is a measure of a property's profitability. It is calculated by taking all revenue from the property and subtracting all necessary operating expenses. This figure is important because it shows how much profit is generated before considering taxes and financing costs.