When an investment management firm has big names like SpaceX (SPCX), Advanced Micro Devices (AMD), and Intel (INTC) in its portfolio, the other positions it adds to during a given quarter tend to slide into the background. Yet, these names may be as consequential for common investors, thus potentially adding a winner to the mix.
That could be the case with Hut 8 (HUT). Veteran hedge fund manager Phillippe Laffont's Coatue Management recently added almost 9.72 million shares of the company to its portfolio, as revealed by its latest filings. Let's take a closer look.
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About Hut 8 Stock
Like many others during the crypto boom, Hut 8 started off as a Bitcoin (BTCUSD) miner. Since its founding in 2017, the company has transformed itself into an energy infrastructure platform integrating power, digital infrastructure, and compute to lease its capacity to artificial intelligence (AI) hyperscalers. As of June 30, 2026, Hut 8 had 8.66 GW of energy capacity across its development pipeline.
Interestingly, Coatue Management made a $150 million strategic investment in Hut 8 through the convertible note route in June 2024. The note was subsequently converted in May 2026.
Valued at a market capitalization of $10.9 billion, HUT stock is now up 71% on a year-to-date (YTD) basis. Is the strong price performance a result of Coatue's sizeable investment in Hut 8? What has led to shares rallying over the past year, and what is the way forward for the company?
www.barchart.com Power at the Heart of Hut 8
Like IREN (IREN), Hut 8's moat lies in power, which is increasingly becoming one of the most crucial components of the AI buildout. The company's Beacon Point and River Bend projects are central in this regard. While Beacon Point is a 1 GW AI data-center campus project based in Texas, River Bend is Hut 8's other major AI campus project based in Louisiana with “potential to scale beyond 1 GW.”
Recently, Beacon Point secured two large compute orders from the same customer with a total contract value of $19.6 billion, with the potential to exceed $50 billion. These deals have brought Beacon Point's total contracted capacity to 704 MW. Similarly, for River Bend, the company has signed a 15-year 245 MW lease with AI infrastructure company Fluidstack for a total value of $7 billion. Anthropic — the AI firm behind Claude — is also involved in this deal indirectly; Fluidstack is the direct contracting party while Anthropic is the ultimate end user.
Overall, Hut 8 has now reported 949 MW of contracted information technology capacity across River Bend and Beacon Point. The aggregate base term contract value has reached approximately $26.6 billion, with expected average annual net operating income (NOI) above $1.75 billion. The two projects are supported by 1,330 MW of utility capacity. Hut 8 has also completed $7.5 billion of project financing through River Bend and Beacon Point.
Notably, Hut 8 has spent years sourcing power, negotiating with utilities, developing large electrical loads, and operating energy-intensive computing sites. That background gives the company an unusual combination of power expertise, land access, data-center development, and operating experience.
IREN is the closest comparison to Hut 8 because it also grew out of BTC mining and is converting power assets toward AI infrastructure. But the difference is that Hut 8 can pursue several monetization routes across the same infrastructure portfolio. It can mine Bitcoin through its American Bitcoin exposure, develop and lease data centers to large tenants, provide managed infrastructure, or allocate power toward computing opportunities offering the best prospective return.
Q2: A Tale of Growth and Misses
Hut 8's numbers for the second quarter of 2026 were mixed. As highlighted earlier, contracted power capacity reached record highs, with revenues growing an impressive 81% year-over-year (YOY) to $74.9 million. Compute revenue of $72.5 million, unsurprisingly, formed the largest segment, more than doubling from the prior year. However, both Digital Infrastructure and Power saw a fall in revenues.
Worryingly, the company reported a loss of $1.27 per share in the quarter compared to EPS of $1.18 in the prior-year period. This was another quarter of not only losses widening from the previous year but losses coming in wider than expected. Yet, a large part of these losses was attributed to unrealized losses on digital assets.
Cash outflows also slowed down. Net cash used in operating activities for the first half of 2026 stood at $32.8 million, much lower than $82.6 million in the year-ago period. Overall, Hut 8 exited the quarter with “approximately $8.1 billion in unrestricted cash, restricted cash and cash equivalents, and Bitcoin holdings, including $7.6 billion attributable to Hut 8 and $497.2 million attributable to American Bitcoin.”
Irrespective of that, HUT stock's sensational rally has brought overvaluation with it. Its forward price-to-earnings (P/E) ratio of 84.7 times and price-to-sales (P/S) ratio of 43 times both come in well above the respective sector medians.
What Do Analysts Think of Hut 8 Stock?
Overall, analysts have a consensus “Strong Buy” rating for HUT stock. The mean target price of $157.47 denotes potential upside of 97% from current levels. Out of 18 analysts covering the stock, 15 have a “Strong Buy” rating, two have a “Moderate Buy” rating, and one analyst has a “Hold” rating.
www.barchart.com On the date of publication, Pathikrit Bose did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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