KBW cuts Hut 8 target as Beacon Point audit clouds River Bend upside

KBW cuts Hut 8 target as Beacon Point audit clouds River Bend upside William Foxley Wed, August 5, 2026 at 4:53 PM GMT+2 2 min read HUT KBW on Wednesday cut Hut 8's (NASDAQ: HUT) price target to $154 from $157 following its second-quarter results. Analyst Stephen Glagola maintained an Outperform rating despite uncertainty around the Beacon Point approval timeline in Texas. The new target implies a projected total return of 52.

2% from the $101. 16 share price listed in the note. Hut 8 shares fell nearly 10% after earnings, even as quarterly EBITDA exceeded expectations on compute margins and lower cash overhead.

"We are updating our model following Q2:26 results and view the post-earnings pullback as more reflective of market myopia rather than weakening fundamentals," Glagola said. Stay ahead of AI infrastructure deals. Get Blockspace in your inbox.

Investors wait for the next lease KBW said investors received limited new information about Hut 8's exclusivity pipeline and a potential River Bend expansion. Near-term leasing visibility remains concentrated on Batavia, Illinois, which has 50 MW of gross capacity and 40 MW of net capacity. The Texas audit added uncertainty around Beacon Point after the state ordered a review of data centers moving through the ERCOT interconnection process.

KBW also said the eventual funding structure for Beacon Point Phase 2 remained unclear. As covered in Hut 8's second-quarter results , KBW believes the market assigns little value to Hut 8's development pipeline beyond its existing leases and remaining operations. River Bend could add 245 MW KBW continues to include a 245 MW net Phase 2 expansion at River Bend in its sum-of-the-parts valuation.

Glagola said Hut 8 appeared close to deciding on a behind-the-meter bridge solution with an independent power producer. Louisiana's initial 245 MW critical IT facility at River Bend is leased to Fluidstack for 15 years under a contract valued at $7 billion over its base term. Google provides a financial backstop for Fluidstack's lease obligations and associated pass-through costs.

Hut 8 DC financed the project with $3. 25 billion of investment-grade senior secured notes . The non-recourse debt carries a 6.

192% coupon, matures in 2042 and fully amortizes over 16. 5 years. Texas audit adds approval risk Texas Gov.

Greg Abbott on Monday directed the Public Utility Commission of Texas and ERCOT to audit data centers awaiting interconnection. ERCOT is considering more than 474 GW of requests, more than five times Texas' record peak demand, with data centers accounting for about 90% of the requested capacity. "While the Texas data center audit directive introduces additional uncertainty around Beacon Point's approval timeline, we view the risk as procedural rather than fundamental," Glagola said.

KBW said the project is signed, financed and has undergone substantial diligence. Stay ahead of AI infrastructure deals. Get Blockspace in your inbox.

Hut 8 has contracted 704 MW of IT capacity at Beacon Point through two 15-year triple-net leases. AEP Texas has secured 1,000 MW of utility capacity for the campus, while its base-term contract value totals $19. 6 billion.