Hut 8 Surges 9.3% on $7B AI Infrastructure Deal with Anthropic, Backed by Google

Summary
• Hut 8 (HUT) surges 9.3% intraday to $40.29, up from $36.85 close
• $7B AI data center partnership with Anthropic and Fluidstack announced
• Google provides financial backstop for 15-year lease term
• Turnover hits 20.68% of float, signaling strong institutional interest

Hut 8’s stock is experiencing a dramatic intraday rally driven by a transformative AI infrastructure partnership. The company’s 245 MW Louisiana data center project, backed by Google and Anthropic, has triggered a surge in volume and price. With the stock trading near its 52-week high of $57.29, investors are weighing the implications of this strategic shift from Bitcoin mining to AI infrastructure.
AI Infrastructure Partnership Ignites Institutional Optimism
Hut 8’s 9.3% intraday surge is directly tied to its $7 billion AI infrastructure partnership with Anthropic and Fluidstack, supported by Google’s financial backstop. The 245 MW Louisiana data center project, scalable to 2,295 MW, positions Hut 8 as a key player in the AI infrastructure boom. The deal’s institutional-grade execution model, involving blue-chip partners like Entergy and J.P. Morgan, has alleviated project delivery risks, attracting capital inflows. Additionally, the company’s pivot from Bitcoin mining to energy-intensive AI infrastructure aligns with surging demand for hyperscale computing, further validating the strategic shift.

Data Processing Sector Volatility Amid AI Infrastructure Shift
The Data Processing & Outsourced Services sector is experiencing mixed momentum, with Equinix (EQIX) down 1.14% despite Hut 8’s rally. While Hut 8’s AI infrastructure play taps into niche demand for high-performance computing, broader sector ETFs like BLOK (-1.92%) and DAPP (-3.45%) reflect caution. The sector’s $422.76B 2025 valuation underscores long-term growth potential, but near-term volatility persists as companies like Hut 8 redefine their value propositions.

Options and ETF Plays for AI Infrastructure Bullishness
• 200-day average: 25.80 (well below current price)
• RSI: 45.55 (oversold territory)
• MACD: -0.53 (bearish) vs. signal line -0.16
• Bollinger Bands: Price at $40.29, near middle band (40.58)
• Kline pattern: Short-term bearish, long-term bullish divergence

Hut 8’s technicals suggest a short-term consolidation phase after the explosive move, but the long-term trend remains intact. Key levels to watch include the 30-day support (37.49–37.78) and 200-day support (12.41–13.30). The Nicholas Crypto Income ETF (BLOX, -2.88%) and Schwab Crypto Thematic ETF (STCE, -2.51%) offer leveraged exposure but remain weak. For options, two contracts stand out:

• HUT20251226C39.5
- Type: Call
- Strike: $39.50
- Expiration: 2025-12-26
- IV: 110.32% (high volatility)
- LVR: 11.53% (moderate leverage)
- Delta: 0.5979 (moderate directional sensitivity)
- Theta: -0.2295 (rapid time decay)
- Gamma: 0.0522 (high sensitivity to price moves)
- Turnover: 23,667 (liquid)
- Why it works: High gamma and IV suggest strong potential for price acceleration if Hut 8 breaks above $40.50. A 5% upside to $42.30 would yield a $2.80 payoff (max(0, 42.30 - 39.50)).

• HUT20251226P40.5
- Type: Put
- Strike: $40.50
- Expiration: 2025-12-26
- IV: 111.23% (high volatility)
- LVR: 14.00% (high leverage)
- Delta: -0.4556 (moderate bearish bias)
- Theta: -0.0594 (slow time decay)
- Gamma: 0.0530 (high sensitivity)
- Turnover: 447,974 (extremely liquid)
- Why it works: High liquidity and leverage make this ideal for hedging or short-term volatility. If Hut 8 consolidates below $40.50, the put could gain value as IV remains elevated. A 5% downside to $38.28 would yield a $2.22 payoff (max(0, 40.50 - 38.28)).

Action: Aggressive bulls should target HUT20251226C39.5 for a breakout above $40.50. Conservative traders may use HUT20251226P40.5 as a volatility hedge.

Backtest Hut 8 Stock Performance
The backtest of a 9% intraday surge from 2022 to the present for the HUT ETF shows a strategy return of 20.78%, with a benchmark return of 16.28% and an excess return of 4.50%. The CAGR is 6.03%, indicating a solid performance relative to the benchmark. However, the strategy has a maximum drawdown of 0.00%, which suggests that the surge has not been accompanied by any significant downside risk.

Hut 8’s AI Infrastructure Play: A High-Volatility Catalyst
Hut 8’s strategic pivot to AI infrastructure has ignited a sharp rally, but technicals suggest short-term consolidation before resuming the long-term bullish trend. The 245 MW Louisiana project, backed by Google and Anthropic, positions the company to capitalize on the AI infrastructure boom. However, sector ETFs like BLOK and DAPP remain weak, highlighting broader market caution. Investors should monitor the 30-day support (37.49–37.78) and 200-day support (12.41–13.30) for directional clues. With Equinix (EQIX) down 1.14%, Hut 8’s divergence underscores its unique positioning. Act now: Buy HUT20251226C39.5 for a breakout above $40.50 or use HUT20251226P40.5 to hedge volatility.