Hut 8 (HUT) Rallies 33.18% on AI Infrastructure Pivot, $150M Investment Validates Strategic Shift

Hut 8 (HUT) surged 3.95% on October 9, marking its seventh consecutive day of gains and a 33.18% rally over the past week. The stock hit its highest intraday level since October 2025, with a 4.46% intraday jump, reflecting renewed investor confidence in its strategic repositioning.

The company’s aggressive pivot to AI and high-performance computing (HPC) infrastructure has driven its recent momentum. A $150 million investment from Coatue Management in August 2025 validated its transition, while the Louisiana AI data center project—backed by a $10 billion computing hardware commitment—signals strong demand for its AI infrastructure. Hut 8’s hybrid facilities, such as the 205-megawatt Vega site in Texas, aim to leverage both Bitcoin mining and AI operations to optimize energy efficiency.

Expansion efforts have accelerated, with four new U.S. sites adding 1.5 gigawatts of capacity. This brings Hut 8’s total operational footprint to 2.5 gigawatts across 19 locations. The company also secured 310 MW of power generation contracts in July 2025, reinforcing its ability to support energy-intensive operations. A DIFC license further enhances access to global capital markets, aligning with its “Power First” strategy to scale energy solutions for AI and crypto.

Valuation debates persist despite the stock’s 90.6% year-to-date gain. At $41.73, Hut 8 trades 28% above its estimated fair value of $32.53, with a 28.6x earnings multiple. Analysts note risks tied to Bitcoin price volatility and regulatory shifts, particularly in natural gas markets. However, the company’s GPU-as-a-Service program and hybrid model position it to capitalize on AI’s surging demand, even as competition from tech giants and data center REITs intensifies.

Corporate governance improvements, including KPMG’s appointment as auditor for its subsidiary American Bitcoin, underscore efforts to bolster transparency ahead of a public listing. These steps aim to attract institutional investors in a sector marked by regulatory scrutiny. While challenges remain, Hut 8’s execution of its AI and energy infrastructure vision will be critical to sustaining its valuation and market position.