Investment bank Keefe, Bruyette & Woods is maintaining its “Outperform” rating and $138 price target for Hut 8, following the AI infrastructure developers fully commercialized lease announcement a its one-gigawatt Beacon Point AI data center campus through a second 15-year lease…
vering 352 MW of IT capacity. KBW estimated that only 139 MW of future colocation growth was reflected in Hut 8’s $91.45 share price before the announcement, compared with the 352 MW added under the second lease
Hut 8 shares rose about 15% in pre-market trading, the report said. KBW analyst Stephen Glagola said the tenant appears to have exercised its expansion option shortly after an exclusivity period expired in mid-July. Glagola said the timing prevented competing developers from pursuing the tenant’s initial 2028 capacity requirements.
Beacon Point lease details The lease includes a 3% annual rent escalator. KBW estimated first-year stabilized NOI of approximately $1.50 million per net MW and a 15% yield on cost. On a trended basis, those figures rise to $1.86 million per net MW and an 18.6% yield.