Hut 8 has signed a major deal for its River Bend data center in Louisiana. The bitcoin miner agreed to a fifteen-year AI data center lease with Fluidstack worth seven billion dollars. The contract has options for expansion and renewal that could raise the total value to around seventeen point seven billion dollars. The deal caused Hut 8 shares to jump nearly twenty percent last week.
Analyst Mark Palmer from Benchmark said the deal marks a shift for Hut 8 from a crypto-focused power operator to an institutional-grade digital infrastructure company. He noted the deal is different from other AI data center agreements because of its structure the quality of cash flows and the strong counterparties involved.
Hut 8 keeps full ownership of its assets and benefits from a fifteen-year payment backstop from Google. This reduces risk for Hut 8 while allowing it to control the economic value of the lease without giving up equity or other concessions. Palmer called this a key factor in lowering counterparty risk and adding long-term stability.
The River Bend lease covers an initial 245 megawatts of AI-ready power. Benchmark values this portion at about seven point six billion dollars. The value reflects both the contracted cash flows and the scarcity of AI-ready power backed by a strong investment-grade counterparty.
Palmer said Hut 8 did not rush into selling or leasing power assets during the early AI infrastructure expansion. The management waited until the arrangement met their strategic goals and return expectations. This careful approach allowed Hut 8 to secure favorable terms compared to peer deals.
The deal also includes three five-year renewal options and additional rights for Fluidstack to expand. If these are exercised, the total contract value could rise to seventeen point seven billion dollars. Benchmark’s valuation also considers Hut 8’s stake in American Bitcoin Corp and the bitcoin holdings on its balance sheet as of September 30.
As a result of the deal Benchmark raised Hut 8’s price target to eighty-five dollars from seventy-seven and kept a buy rating on the stock. The analyst highlighted the strong long-term cash flows and expansion potential as reasons for the positive outlook.
Other brokers have also adjusted price targets. Cantor Fitzgerald increased its target to seventy-two dollars from sixty-four and Canaccord raised its target to sixty-two dollars from fifty-four.
Overall the River Bend agreement positions Hut 8 as a key player in AI infrastructure while continuing its bitcoin mining operations. The combination of long-term contracts strong counterparties and potential expansion makes the company attractive to investors looking for exposure to both AI and crypto-related infrastructure. The deal reflects Hut 8’s careful strategy and ability to secure high-value agreements in a competitive market.
