HUT Stock Drops After Historic Rally, While Wall Street Doubles Down On AI Data Center Pivot

• Hut 8 stock fell as much as 12% Thursday after surging more than 35% in the previous session to a record high above $100.
• Analysts on Wall Street raised their price targets, stating Hut 8’s transition from Bitcoin mining to AI-focused digital infrastructure is gaining credibility with institutional investors.
• The company’s 352 MW lease at its Beacon Point campus is viewed as one of the largest AI infrastructure deals in the sector.

Shares of Hut 8 (HUT) dropped as much as 12% in midday trade on Thursday despite getting a slew of price target hikes from Wall Street after announcing a $10 billion data center lease in Texas.

HUT’s stock fell over 12% to an intra-day low of around $93 in midday trade after hitting a record high of over $100 in the previous session and logging its largest single-day gain on record of over 35%. 

However, on Stocktwits, retail sentiment around the company improved to ‘extremely bullish’ from ‘bullish’ over the past day, accompanied by chatter at ‘extremely high’ levels. 

Wall Street Sees More Upside For Hut Stock

Canaccord raised its price target on Hut 8 to $130 from $70 while maintaining a ‘Buy’ rating on the shares, according to a note to investors cited by TheFly. The revised target implies roughly 40% upside from Thursday’s intraday low near $93.

The firm said Hut 8’s strategic execution continues to accelerate, noting that the company has secured two major AI colocation agreements within just a few quarters.“In just a couple of quarters, Hut has signed two marquee AI colloborative deals with some of the best terms we have seen across the sector,” analysts wrote in a research note.

Citizens also lifted its target to $140 from $100 and maintained an ‘Outperform’ rating. The new target implies upside of roughly 50% from Thursday’s lows. According to the firm, Hut 8’s latest 352-megawatt lease further validates the broader shift among former Bitcoin miners toward AI-focused digital infrastructure.

“Companies transitioning from bitcoin mining to AI-focused data center infrastructure are increasingly being validated as credible digital infrastructure providers,” Citizens wrote.

Northland raised its price target to $120 from $70 while keeping an ‘Outperform’ rating on the shares. The target suggests upside of roughly 29% from Thursday’s low. The firm stated Hut 8’s newly announced deal is another sign the company has a scalable growth pathway.

Needham analyst John Todaro also increased his target to $128 from $88 and reiterated a ‘Buy’ rating, implying approximately 38% upside from current levels.

Bitcoin To AI Pivot Drives Analyst Optimism

The upgrades follow Hut 8’s announcement earlier this week that it signed a long-term lease tied to its Beacon Point AI campus in Corpus Christi, Texas. The agreement covers 352 megawatts of IT capacity and is expected to generate nearly $10 billion in contracted revenue over the life of the lease.

The deal represents one of the largest AI infrastructure agreements signed by a former Bitcoin (BTC) mining company and reinforces Hut 8’s broader pivot away from pure crypto mining toward power and compute infrastructure.

Hut 8 still holds around 13,696 Bitcoin on its balance sheet, valued at around $1.13 billion as per Bitcoin’s current price of over $82,200. 

Read also: Tom Lee Says BMNR May Slow Down On Ethereum For ‘Other Things’ In Crypto

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