Arete analyst Pierre-Marie D'Ornano initiated coverage of Hut 8 with a Buy rating and Street-high $136 price target. 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 analyst tells investors in a research note. The firm views Hut 8's data center cost of debt as low.
