Hut 8 Surges 10.23% on $7 Billion AI Infrastructure Deal with Anthropic and Fluidstack – Is This the New Energy for Tech?

Summary
• Hut 8 (HUT) surges 10.23% intraday to $40.62, up from a $36.85 close
• Intraday high hits $44.6999, with $39.9 low, signaling sharp volatility
• $7 billion AI data center partnership with Anthropic and Fluidstack announced
Google backs lease obligations; Entergy provides 330 MW power support
• Sector: Data Processing & Outsourced Services; IT Services Outsourcing Market to grow at 9.1% CAGR to $778B by 2032
• Options frenzy: 20 contracts traded, with HUT20251226P40.5 seeing 447,974 turnover
• ETFs like BLOX (-2.46%) and MNRS (-3.47%) underperform as HUT defies sector trends
• Technicals: Short-term bearish trend, long-term bullish; RSI at 45.5 (oversold), MACD -0.534
• Key levels: 30D MA at $41.27, 200D MA at $25.796; Bollinger Bands at $48.29 (upper), $32.87 (lower)
AI Infrastructure Deal Ignites Investor Optimism
Hut 8’s 10.23% intraday surge stems from its landmark $7 billion AI infrastructure partnership with Anthropic and Fluidstack, backed by Google’s financial guarantees. The 245 MW Louisiana data center project, scalable to 2,295 MW, positions HUT as a critical player in AI’s energy-intensive future. Google’s backstop and Entergy’s 330 MW power commitment de-risk execution, while the shift from Bitcoin mining to institutional-grade AI infrastructure aligns with sector trends. The deal’s $17.7 billion potential value if all renewal options are exercised has redefined HUT’s narrative, attracting speculative and institutional demand.

Data Processing & Outsourcing Sector Gains Momentum
The Data Processing & Outsourced Services sector, led by IBM (0.58% intraday gain), benefits from AI infrastructure demand. The IT Services Outsourcing Market is projected to grow at 9.1% CAGR to $778B by 2032, driven by AI and cloud adoption. HUT’s pivot mirrors sector dynamics, where firms like Accenture and Capgemini leverage AI and automation. While HUT’s 10.23% move outpaces IBM’s 0.58%, the sector’s long-term growth trajectory validates HUT’s strategic shift.

Options and ETFs Highlight Volatility and Strategic Entry Points
• 200-day average: $25.796 (below current price); RSI: 45.5 (oversold); MACD: -0.534 (bearish); Bollinger Bands: $48.29 (upper), $32.87 (lower)
• Key levels: 30D MA at $41.27, 200D MA at $25.796; support at $37.49–$37.78, resistance at $12.41–$13.30
• Top Options:
• HUT20251226C40 (Call, $40 strike, 12/26 expiry):
- IV: 146.78% (high volatility)
- Leverage ratio: 9.85%
- Delta: 0.5656 (moderate sensitivity)
- Theta: -0.2708 (rapid time decay)
- Gamma: 0.0401 (moderate price sensitivity)
- Turnover: 20,427
- Payoff (5% upside): $2.65 per share (42.65 - 40)
- Why: High IV and leverage amplify gains if HUT breaks $40.5 resistance.
• HUT20251226P40.5 (Put, $40.5 strike, 12/26 expiry):
- IV: 107.41% (moderate volatility)
- Leverage ratio: 13.92%
- Delta: -0.4687 (moderate bearish bias)
- Theta: -0.0522 (slow decay)
- Gamma: 0.0554 (high sensitivity)
- Turnover: 447,974 (liquid)
- Payoff (5% downside): $0.85 per share (40.5 - 38.5)
- Why: High gamma and turnover make it ideal for short-term volatility.
• ETFs: BLOX (-2.46%) and MNRS (-3.47%) underperform, suggesting sector divergence. Aggressive bulls may consider HUT20251226C40 into a break above $40.5, while cautious traders might short HUT20251226P40.5 if $39.5 support holds.

Backtest Hut 8 Stock Performance
The backtest of a 10% intraday surge from 2022 to the present for the HUT ETF shows a strategy return of 0.79%, significantly underperforming the benchmark return of 21.58%. The strategy had a maximum drawdown of 0.00% and a Sharpe ratio of 0.01, indicating a risk-free but low-return performance.

Hut 8’s AI Pivot Positions for Long-Term Growth – Watch 40.5 Support and 44.70 Resistance
Hut 8’s 10.23% surge validates its strategic pivot to AI infrastructure, with Google and Anthropic backing a $7B+ opportunity. While short-term technicals show bearish momentum (MACD -0.534, RSI 45.5), long-term bullish trends (200D MA at $25.796) suggest resilience. Investors should monitor $40.5 support and $44.70 intraday high as key levels. The sector leader IBM’s 0.58% gain underscores broader AI infrastructure demand. Act now: Buy HUT20251226C40 if $40.5 is cleared, or short HUT20251226P40.5 if $39.5 holds. Watch for $39.5 breakdown or regulatory clarity on AI energy use.