Hut 8 Corp (NASDAQ:HUT) stock fell 1.40% (As on March 24, 11:26:33 AM UTC-4, Source: Google Finance) after Arete initiated coverage of the company with a Buy rating and Street-high $136 price target, reflecting its optimism for the latter’s River Bend data center, which has the potential to generate $17.7 billion in leasing revenues from Google alone.. The company’s 15-year River Bend lease comes with a full backstop of rent payments from Google, 99% margin on a triple-net ease, with full pass-through, yielding an average of $454M in annual operating income, the firm tells investors in a research note. Arete cited Hut 8’s River Bend lease agreement as a key factor in its positive assessment. The 15-year lease includes rent payment guarantees from Google and operates as a triple-net lease with full pass-through terms. The agreement generates an average of $454 million annually in operating income with 99% margins, according to the research firm. In December last year, Hut 8 Corp. inked a 15-year leasing deal with Google, which has the potential to generate up to $17.7 billion in revenues if and when the latter exercises all its renewal options. The base term covers 245 MW of IT capacity for Fluidstack, for $7.7 billion. It also gives the latter the right of first offer for 1,000 MW of capacity in the campus’ future expansion.
The initial data hall is expected to come online in the second quarter of 2027, with additional data halls scheduled in the remainder of next year. In relation to the lease agreement, Arete Research also underscored Hut 8 Corp.’s low cost of debt for its data center operations. However, it cautioned against the listed firm’s Bitcoin exposure, having owned 61 percent of American Bitcoin Corp. and maintained its commitment to mining Bitcoins. Arete noted that Hut 8’s cost of debt for its data center operations remains low. The firm expressed caution regarding the company’s Bitcoin exposure, noting that Hut 8 owns approximately 61% of American Bitcoin Corp. and maintains its commitment to Bitcoin mining operations.
In other recent news, Hut 8 Mining Corp. reported significant financial results for the year 2025. The company achieved sales of $235.1 million, marking a 44.8% increase from the previous year’s $162.4 million. The fourth-quarter sales for 2025 reached $88.5 million, showing a 6% rise from the third quarter’s $83.5 million. In other company news, Vertiv announced a new digital twin platform for AI data centers, marking a shift from traditional building modeling.
Moreover, the company has Refined portfolio structure and streamlined capital allocation framework through the sale of a 310 MW portfolio of four natural gas-fired power plants, which closed in February 2026, and the launch and public listing of American Bitcoin Corp., a majority-owned Bitcoin accumulation subsidiary.