Hut 8 Soars 18% on Landmark AI Data Center Deal—What’s Fueling This Volatile Move?

Summary
• Hut 8’s $7B, 15-year Fluidstack lease at River Bend sparks 18.06% intraday surge to $52.09
• Benchmark analyst raises price target to $85, signaling 93% upside from prior close
• Google’s payment backstop and expansion options could lift contract value to $17.7B

Hut 8 (HUT) has surged 18.06% in a single trading session, driven by a transformative AI data center lease agreement and a bullish analyst upgrade. The stock’s intraday high of $52.14 and low of $45.14 reflect intense volatility, with institutional-grade infrastructure positioning and Google’s involvement amplifying investor optimism. As the data center sector races to meet AI demand, HUT’s strategic pivot from crypto to digital infrastructure is reshaping its valuation narrative.
Landmark AI Data Center Deal Ignites 18% Surge in HUT Shares
Hut 8’s 18.06% intraday rally stems from its $7 billion, 15-year Fluidstack lease at the River Bend data center, backed by Google’s payment guarantees and expansion options. Benchmark analyst Mark Palmer highlighted the deal’s structural advantages: long-dated, investment-grade cash flows, and embedded expansion potential across three counterparties (Anthropic, Fluidstack, and Google). The 15-year backstop from Google de-risks counterparty exposure, while three five-year renewal options could elevate total contract value to $17.7 billion. This strategic shift from crypto-focused power ownership to institutional-grade digital infrastructure has redefined Hut 8’s revenue durability and quality, prompting a $85 price target (93% upside from $44.12) and a buy rating.

Data Center Sector Gains Momentum Amid AI Infrastructure Boom
The data center sector is experiencing a construction frenzy, with global investment hitting $61 billion in 2025. While Hut 8’s 18.06% surge outpaces the sector’s mixed performance—Equinix (EQIX), the sector leader, fell 0.36%—its AI-focused infrastructure deal aligns with broader trends. Google’s involvement in River Bend mirrors its $17.4 billion GPU deal with Microsoft and its West Memphis data center project, underscoring institutional demand for AI-ready power. However, Hut 8’s unique structure—combining long-term cash flows, expansion options, and Google’s backstop—positions it as a standout in a sector where energy constraints and regulatory hurdles often delay projects.

Options and ETFs Spotlight: Navigating HUT’s Bullish Momentum
• Kline pattern: Short-term bullish trend; MACD: -0.36 (bearish signal); RSI: 50.71 (neutral); Bollinger Bands: Price at 48.20 (upper) vs. 34.25 (lower); 200D MA: 26.20 (far below current price)

Hut 8’s technicals suggest a continuation of its bullish momentum, with key resistance at $57.29 (52W high) and support at $41.23 (middle Bollinger Band). The Direxion Daily S&P 500 Bull 3X Shares (SPXL) and ProShares UltraPro S&P500 (UPRO) offer leveraged exposure to broader market trends, while the iShares A.I. Innovation and Tech Active ETF (BAI) aligns with AI infrastructure themes. For options, HUT20251226C50 and HUT20251226C51 stand out:

• HUT20251226C50 (Call, $50 strike, 12/26 expiry): IV 80.77% (high liquidity), leverage ratio 16.29%, delta 0.69, theta -0.4466 (rapid time decay), gamma 0.0715 (price sensitivity). Turnover: 1.23M. Payoff at 5% upside (54.69): $4.69/share. This contract balances leverage and liquidity for a moderate bullish bet.
• HUT20251226C51 (Call, $51 strike, 12/26 expiry): IV 81.47%, leverage ratio 20.05%, delta 0.61, theta -0.4344, gamma 0.0770. Turnover: 111K. Payoff at 5% upside: $3.69/share. Its higher leverage and gamma make it ideal for aggressive bulls expecting a sharp move.

Aggressive bulls may consider HUT20251226C51 into a break above $51.50.

Backtest Hut 8 Stock Performance
The backtest of HUT's performance following an 18% intraday surge from 2022 to the present shows a strategy return of 11.26%, with a benchmark return of 43.58% and an excess return of -32.32%. The strategy has a CAGR of 2.76% and a maximum drawdown of 0.00%, indicating a volatile but ultimately positive return. However, the Sharpe ratio is low at 0.02, suggesting that the risk-adjusted return is modest.

Bullish Outlook: HUT’s AI Infrastructure Play Positions for Long-Term Growth
Hut 8’s 18.06% surge reflects a strategic repositioning from crypto volatility to institutional-grade AI infrastructure, with Google’s backstop and expansion options providing durable cash flows. While technicals show a bearish MACD and overbought RSI, the stock’s short-term bullish trend and key resistance at $57.29 suggest continued upside. Investors should monitor the iShares A.I. Innovation and Tech Active ETF (BAI) and leveraged ETFs like SPXL for broader market alignment. The sector leader Equinix (EQIX), down 0.36%, highlights HUT’s outperformance. Watch for a break above $52.14 and a test of $57.29—success could validate Benchmark’s $85 price target.