Hut 8 Soars 9.8% on $7B AI Infrastructure Deal—Can This Momentum Sustain?

Summary
• Hut 8 (HUT) surges 9.8% intraday to $40.48, breaking above its 52-week high of $57.29
• Google backs 15-year $7B data center lease in Louisiana, with Anthropic and Fluidstack as key partners
• Options volatility spikes: 2025-12-26 $40.5 put and $40 call see 118%–154% price change ratios
• Turnover jumps to 20.35M shares, 20.9% of float, as the stock trades 21% above premarket levels

Hut 8’s stock is in a tailwind as the ex-bitcoin miner pivots to AI infrastructure. A $7B Louisiana data center deal, backed by Google and Anthropic, has triggered a 9.8% intraday rally. With the stock trading at 40.48—up from 36.85—investors are scrambling to assess whether this surge reflects a sustainable re-rating or a short-term hype play. The options market is already pricing in extreme volatility, with key contracts showing leverage ratios above 10% and implied volatility ratios exceeding 138%.
AI Infrastructure Partnership Ignites Institutional Confidence
Hut 8’s 9.8% intraday surge is directly tied to its $7B AI infrastructure partnership with Anthropic and Fluidstack, announced on December 17. The deal involves developing 245 MW of IT capacity at its River Bend campus in Louisiana, with potential expansion to 2,295 MW. Google’s financial backstop for the 15-year lease term has alleviated investor concerns about execution risk, particularly given Hut 8’s institutional-grade execution model involving Entergy, J.P. Morgan, and Goldman Sachs. The partnership aligns with the broader $422.76B IT outsourcing market, which is projected to grow at 9.1% CAGR through 2032. This strategic pivot from Bitcoin mining to AI infrastructure has repositioned Hut 8 as a power-first enabler of gigawatt-scale AI deployment, attracting capital from both tech and energy sectors.

Data Processing Sector Rally: Hut 8 Outpaces Equinix’s 1.2% Decline
While Hut 8’s stock soars, sector leader Equinix (EQIX) trades down 1.18%, highlighting divergent momentum within the Data Processing & Outsourced Services sector. The IT Services Outsourcing Market’s projected 9.1% CAGR through 2032 underscores long-term tailwinds for infrastructure providers, but Hut 8’s AI-specific positioning—backed by Google and Anthropic—has created a unique value proposition. Equinix’s decline may reflect near-term profit-taking in a sector where Hut 8’s 61.3x dynamic P/E ratio now outpaces traditional colocation peers. The sector’s $422.76B valuation in 2025 suggests Hut 8’s 10.8% market cap gain today could be a harbinger of broader re-rating.

Options Volatility and ETFs Signal High-Risk, High-Reward Playbook
• Technical Indicators: 200D MA at $25.80 (well below current price), RSI at 45.55 (neutral), MACD at -0.53 (bearish), Bollinger Bands (Upper: $48.29, Middle: $40.58, Lower: $32.87)
• ETFs: Nicholas Crypto Income ETF (BLOX) down -2.57%, Grayscale Bitcoin Miners ETF (MNRS) down -3.47%

Hut 8’s technicals show a short-term bearish trend but long-term bullish setup, with the stock trading near its 200D MA resistance. The options market is pricing in extreme volatility, with key contracts like HUT20251226C40 and HUT20251226P40.5 showing leverage ratios of 9.85% and 13.93%, respectively. For aggressive bulls, HUT20251226C40 (strike: $40, delta: 0.566, IV: 146.35%) offers 154.66% price change potential if Hut 8 closes above $40.5 by December 26. A 5% upside scenario (ST = $42.49) would yield a call payoff of $2.49 per contract. For bearish hedges, HUT20251226P40.5 (strike: $40.5, delta: -0.467, IV: 107.76%) provides 49.32% downside protection with a theta of -0.0529. Investors should monitor the 40.5 psychological level and the 30D support at $37.49–37.78.

Backtest Hut 8 Stock Performance
Here is the backtest report of HUT performance after 10% intraday surge from 2022 to now. The details are as follows:1. Historical Performance: Hut 8 Mining (HUT) experienced a significant intraday surge of 10% from 2022 to the present date. This performance was closely monitored and analyzed for its impact on overall trends and market perception.2. Current Valuation: As of the latest data, HUT is currently valued at $46.04, which represents a substantial increase from its previous price levels.3. Market Sentiment: The stock's recent performance has been positive, with a 7-day share price return above 7% and a 90-day share price return exceeding 40%. This indicates strong momentum in the stock's favor.4. Analyst Perspectives: Despite the positive performance, some analysts remain cautious. The stock is trading more than 20% below analysts' average price target, which suggests that the market may not have fully priced in the company's future growth potential.5. Risks and Considerations: Investors should be aware of potential risks, such as sustained Bitcoin price weakness or delays in commercializing Hut 8’s capital-intensive AI and power projects, which could impact the stock's performance in the short term.In conclusion, Hut 8 Mining has shown strong performance with a 10% intraday surge from 2022 to the present, driven by increased mining capacity and conservative cost management. However, investors should remain mindful of potential risks and market fluctuations that could affect the stock's future trajectory.

Hut 8’s AI Pivot: A High-Velocity Trade with Sector Implications
Hut 8’s 9.8% intraday surge reflects a strategic repositioning from Bitcoin mining to AI infrastructure, backed by Google and Anthropic. While the stock’s 61.3x P/E ratio suggests optimism, the options market’s 138%–157% implied volatility ratios indicate pricing in extreme outcomes. Sector leader Equinix (EQIX) trading down -1.18% highlights divergent momentum, but Hut 8’s AI-specific execution model could redefine the sector’s value proposition. Investors should watch the 40.5 resistance and 30D support levels, while the HUT20251226C40 call and HUT20251226P40.5 put offer leveraged exposure to near-term volatility. If Hut 8 closes above $40.5 by December 26, this could signal a broader re-rating of AI infrastructure plays.