Hut 8 stock forms cup-and-handle as earnings, AI deals drive revenue growth
Hut 8 stock has risen for three consecutive months and is approaching this year’s high as the company readies quarterly earnings due Tuesday. The miner-turned-AI data center operator trades around $57, up about 1,285% from its 2023 low and giving it a market cap above $6.2 billion. Key drivers include large AI/data center deals — notably a multi-billion-dollar River Bend campus build for Anthropic (Claude) with 2,295 MW capacity planned in three tranches — and partnerships with Google that underpin 2026 revenue projections. Yahoo Finance consensus expects quarterly revenue of about $95 million (up ~200% year-over-year) and full-year revenue near $241 million (up 48% YoY), with forecasts suggesting revenue could exceed $425 million this year (up 76% YoY) as AI contracts ramp. Analysts remain broadly bullish; top targets include $80 (HC Wainwright, Roth MKM) and $75 (KBW), with an average target near $64 (~12% above current price). Technicals show a long-term cup-and-handle pattern on the monthly chart with an upside around $82.70 (~40% above current), though monthly patterns can take months or years to resolve. Estimated EPS is a loss of $0.15 versus a prior profit of $1.55, reflecting near-term profitability pressures despite revenue growth. For traders: upcoming earnings, AI contract updates and guidance, and confirmation of a breakout above the cup handle resistance are the primary near-term catalysts to watch.
Bullish
The news is net bullish for Hut 8 and related equity/crypto market sentiment for several reasons. Fundamental catalysts: rapidly growing revenue driven by high-value AI/data-center contracts (Anthropic, Google) and large projected revenue increases (consensus expecting +200% quarterly revenue YoY and potential +76% annual growth) materially improve the company’s growth profile even if EPS is pressured in the near term. Analyst upgrades and above-current average price targets (average target ~12% above current) add buy-side conviction. Technical catalysts: a multi-monthly cup-and-handle pattern with a theoretical upside to ~$82.70 (~40% higher) signals substantial upside if confirmed; the stock has also moved above the 50-month MA, indicating long-term momentum. Market-impact considerations: positive earnings and encouraging guidance could trigger momentum buying from retail and institutional traders, lifting related mining and AI-infrastructure names and possibly increasing risk-on flows into BTC miners. Risks and caveats: the cup-and-handle is on the monthly chart so breakout timing is uncertain; EPS estimates show near-term losses which could disappoint if revenue growth or contract timing underperforms; macro/crypto volatility (bitcoin price swings, funding rates) could amplify moves. Short-term trading implications: watch earnings beat/miss, guidance, specifics/timing of Anthropic/Google revenue recognition, and breakout confirmation above handle resistance — these will determine intraday/weekly direction. Long-term implications: if AI contracts scale as announced, structural revenue growth supports re-rating, making a multi-quarter bullish thesis plausible despite short-term profitability noise.