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The end of the year is always a good time to reassess your portfolio and look to make moves for the new year and beyond. One company that should be on your radar for 2025 is crypto stock Hut 8 (Nasdaq: HUT).

Hut 8 is a Bitcoin mining stock, but it recently branched out into AI data centers, utilizing its massive computing power to capitalize on the growth of data centers. Hut 8 is also one of the largest corporate owners of Bitcoin.

The stock is up some 81% year to date, trading at around $24 per share and it looks like it still has room to run.

Expansion into AI data centers

Hut 8 is one of the largest Bitcoin miners in North America, but its stock price shot up in July when it announced it had received a $150 million investment from Coatue Management to, in part, build out its AI infrastructure.

“Commercialization efforts for our new AI vertical are also progressing nicely, including the assembly of our first GPU cluster and fit-out of our data center suite,” Asher Genoot, CEO of Hut 8, said back in July. “More than half of our 1,000 NVIDIA H100 GPUs have been configured and are now undergoing testing at the manufacturer’s facility. We are on track to go live in H2 and begin generating revenue at a forecasted annual rate of approximately $20 million.”

Also this year, the firm launched a GPU-as-a-service business through its Highrise AI subsidiary. The delivery of its first GPU cluster, hosted at a data center in Chicago, went to an AI cloud services provider. The cluster is made up of multiple Hewlett Packard Enterprise Cray supercomputers powered by 1,000 NVIDIA H100 GPUs. Hut 8 has a five-year agreement with the AI cloud services provider.

In addition, the firm announced a partnership with Bitmain, which produces Bitcoin mining chips and hardware. The hosting agreement is expected to generate up to $135 million in annualized revenue for Hut 8. Also, it is building a facility in the Texas panhandle to support the operation.

Buying more Bitcoin

In the most recent quarter, Hut 8 doubled its revenue to $43.7 million and generated $0.9 million in net income, up from a net loss of $4.4 million, or 10 cents per share, in the same quarter a year earlier. It also improved its financials by converting an outstanding loan balance to common stock at 51%, thus reducing its interest payments by $17.6 million across three years.

And earlier this week, Hut 8 purchased approximately 990 Bitcoin at a cost of around $100 million. It now owns 10,096 Bitcoin in its strategic Bitcoin reserve, which has a market value of more than $1 billion. The company believes it is one of the ten largest corporate owners of Bitcoin in the world.

Analysts are bullish

Of the nine Wall Street analysts that cover Hut 8, all of them recommend the stock as a buy. It has a median price target of about $32 per share, which is roughly 48% higher than the current price.

Even the low end of the range, $28 per share, shows 15% upside for Hut 8. The high end, $36 per share, would suggest a 66% increase over the current price of $24 per share.

Last week, Piper Sandler set a price target of $33 per share for Hut 8. According to The Fly.com, Piper Sandler analysts expects the price of Bitcoin to rise, which will create more profit and larger Bitcoin treasuries for Bitcoin miners. The firm also cited Hut 8’s vast assets and ability to profitably scale operations.

While Hut 8 did not offer guidance for 2025, analysts anticipate roughly 72% revenue growth in 2025 to $291 million.

With its growth in both Bitcoin mining and high-performance computing AI data centers, Hut 8 is well-positioned in two high-growth industries to continue its surge into 2025.

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