Is it too late to invest in Hut 8 stock as it soars on AI data center lease deal?

Hut 8 HUT pushed meaningfully higher on Wednesday after announcing an artificial intelligence (AI) lease agreement for its Beacon Point campus in Texas.

This $9.8 billion data center deal that spans over 15 years validates HUT’s pivot from a speculative Bitcoin miner to a high-scale AI infrastructure company.

Including today’s surge, Hut 8 stock is up a remarkable 150% versus its YTD low in late March.

What this AI data center lease deal means for Hut 8 stock

The aforementioned 352 MW AI data center lease agreement is a fundamental game-changer for HUT’s valuation profile – shifting it from a “hash-rate” multiple to an “AI infrastructure” multiple.

This new contract insulated the firm’s balance sheet from the cyclical volatility of the crypto market.

Plus, it includes a 3.0% annual rent escalator and is expected to contribute an average annual Net Operating Income (NOI) of $655 million upon stabilization.

By securing a confidential, high-investment-grade tenant for 352 MW of IT capacity, Hut 8 Corp has expanded its total contracted AI capacity to 597 MW, representing an aggregate base contract value of $16.8 billion.

The deal is bullish for HUT shares because it optimizes the firm’s weighted average cost of capital (WACC) due to high-grade construction bonds that will allow it to leverage its 15-year contracted cash flows to fund expansion while preserving shareholder equity.

Is there any further upside left in HUT shares?

Beyond this AI lease agreement, the long-term bull thesis for Hut 8 shares rests on the company’s proprietary 8.3 GW power pipeline.

In an era where AI demand is outpacing electrical grid upgrades, its 1,000 MW interconnection at  Beacon Point is a generational asset.   

HUT remains attractive also because its underlying fundamentals are hardening, despite a $253.1 million net loss in Q1 largely due to non-cash, mark-to-market adjustments on $9,110 BTC on its balance sheet.

Revenue more than tripled in the first quarter to $71 million, and gross margin expanded to a rather impressive 64%.

This operational leverage proves the Nasdaq-listed firm’s transition from volatile mining to fixed-duration artificial intelligence hosting is already yielding superior unit economics.

How Wall Street recommends playing Hut 8 Corp

While HUT stock’s relative strength index (RSI) now sits in the early 80s – indicating extremely “overbought” conditions, the potential $25 billion total contract value (including renewal options) suggests it has more room to the upside.  

The Miami-headquartered firm is currently benefitting from a “scarcity premium” as one of the few publicly traded companies offering direct exposure to gigawatt AI factories.

Investors could also take heart in the fact that Wall Street analysts remain constructive as ever on Hut 8 Corp for the remainder of 2026.

According to The Wall Street Journal, the consensus rating on HUT sits at “buy” currently, with price targets going as high as $136, indicating the company’s share price could rally another 28% from here over the next 12 months.