Hut 8's Tuesday Decline Misinterpreted and Presents a Buying Opportunity: Benchmark

Hut 8's Stock Reaction: Hut 8's shares fell nearly 13% after a disappointing earnings call where no AI hyperscaler tenant was announced, despite the company reporting record revenue and profitability.

Analyst's Perspective: Benchmark analyst Mark Palmer described the selloff as "short-sighted," maintaining a buy rating and a $78 price target, emphasizing Hut 8's long-term potential in AI and energy sectors.

Future Outlook: CEO Asher Genoot highlighted a disciplined approach to securing tenants and confirmed that the River Bend data center is on track for completion by late 2026, aiming to position Hut 8 for future growth.

Market Context: The decline in Hut 8's stock coincided with a broader downturn in crypto and traditional markets, with Hut 8 being the worst performer in its sector during this period.