Hut 8 (HUT) Surges 10.5% on 1.5GW Expansion Plan: A New Era for Bitcoin Mining and AI Infrastructure?

Summary
• Hut 8’s stock rockets 10.49% intraday, hitting $25.91, a seven-month high.
• The company announces 1,530 MW expansion across four U.S. sites, doubling its capacity to 2.5 GW.
• Options volatility spikes, with HUT20250905C26 and HUT20250905C27 seeing 170% and 194% price change ratios.

Hut 8’s dramatic intraday rally reflects investor enthusiasm for its aggressive expansion into AI-ready data centers and Bitcoin mining. With a 10.5% surge from $23.1 to $25.91, the stock’s move is fueled by a strategic pivot to energy-intensive use cases and a $2.4 billion liquidity plan. The expansion, targeting 1.5 GW of new capacity, positions Hut 8 to capitalize on surging demand for compute power, while options activity suggests heightened speculative interest.
1.5 GW Expansion Ignites Bullish Sentiment
Hut 8’s 10.5% intraday surge is directly tied to its announcement of four new U.S. sites, advancing 1,530 MW of capacity from exclusivity to development. The expansion, which includes 1,000 MW in Texas and 300 MW in Louisiana, aligns with growing demand for AI infrastructure and Bitcoin mining. CEO Asher Genoot emphasized the move as a “defining step” toward becoming a top-tier energy and digital infrastructure platform. The company’s $2.4 billion liquidity strategy—leveraging Bitcoin reserves, credit facilities, and an ATM equity program—further solidifies execution confidence, attracting both institutional and retail investors.

Data Processing Sector Gains Momentum as AI Demand Rises
The Data Processing & Outsourced Services sector, led by IBM (+1.12%), has seen renewed interest amid AI-driven compute demand. Hut 8’s expansion into AI-ready infrastructure mirrors broader industry trends, where firms like Google (via TeraWulf investment) are securing energy assets for high-performance computing. While IBM’s growth is driven by enterprise cloud solutions, Hut 8’s focus on energy-optimized data centers positions it as a niche player in the AI infrastructure boom. The sector’s 1.12% gain underscores market validation of Hut 8’s strategic pivot.

Options and ETFs to Capitalize on HUT’s Volatility
• MACD: 0.736 (above signal line 0.638), bullish divergence
• RSI: 61.89 (neutral, approaching overbought)
• Bollinger Bands: Price at $25.91, above upper band ($24.60), indicating strong momentum
• 200D MA: $19.15 (price at $25.91, 35% above)

Hut 8’s technicals suggest a continuation of its bullish breakout. Key support at $21.54 (30D MA) and resistance at $26.36 (intraday high). The stock’s 10.5% move has triggered high-liquidity options, with HUT20250905C26 and HUT20250905C27 offering leveraged exposure. For conservative traders, a long call at $26 strike (HUT20250905C26) balances risk and reward, while aggressive bulls may target the $27 strike (HUT20250905C27) for 22.5% leverage.

Top Option 1: HUT20250905C26
• Code: HUT20250905C26
• Type: Call
• Strike Price: $26
• Expiration: 2025-09-05
• IV: 86.62% (high volatility)
• Leverage Ratio: 17.34% (moderate)
• Delta: 0.517 (moderate sensitivity)
• Theta: -0.1166 (rapid time decay)
• Gamma: 0.1026 (high sensitivity to price moves)
• Turnover: 59,392 (high liquidity)
• Payoff at 5% Upside ($27.21): $1.21 per contract
• Why: High gamma and moderate delta make this option responsive to continued price action, while high turnover ensures liquidity.

Top Option 2: HUT20250905C27
• Code: HUT20250905C27
• Type: Call
• Strike Price: $27
• Expiration: 2025-09-05
• IV: 90.45% (extreme volatility)
• Leverage Ratio: 22.47% (high)
• Delta: 0.4235 (moderate sensitivity)
• Theta: -0.1103 (rapid decay)
• Gamma: 0.0965 (high sensitivity)
• Turnover: 535,190 (exceptional liquidity)
• Payoff at 5% Upside ($27.21): $0.21 per contract
• Why: Despite lower intrinsic value, the 22.5% leverage and 535K turnover make this ideal for aggressive bulls expecting a breakout above $27.

Hook: If $26.36 (intraday high) holds, HUT20250905C27 offers explosive potential for a 5% upside. Conservative traders should target HUT20250905C26 for a balanced risk-reward profile.

Backtest Hut 8 Stock Performance
The backtest of HUT's performance after a 10% intraday surge indicates favorable short-to-medium-term gains, with win rates and returns consistently rising across 3, 10, and 30 days. The 10-day return is 3.76%, and the maximum return during the backtest period was 14.99%, suggesting the strategy has potential for significant gains within a week following the surge.

Hut 8’s 1.5 GW Expansion: A Catalyst for Sustained Growth?
Hut 8’s 10.5% rally is a clear signal of market confidence in its AI and Bitcoin infrastructure strategy. With 1,530 MW of new capacity and $2.4 billion in liquidity, the company is well-positioned to capitalize on surging demand for energy-optimized compute. Technicals favor a continuation above $26.36, with RSI near overbought levels and MACD divergence suggesting momentum. Investors should monitor the $21.54 support (30D MA) and $26.36 resistance. For sector context, IBM’s 1.12% gain highlights broader industry strength. Action: Buy HUT20250905C26 for a balanced play or HUT20250905C27 for aggressive upside, while watching for a breakdown below $21.54 to trigger a reevaluation.