We just covered Billionaire Dan Loeb Pivots to AI and Sells Old Economy Stocks: His Top 7 AI Picks. Hut 8 (NASDAQ:HUT) ranks #4 (see Billionaire Dan Loeb’s Top 5 AI Stock Picks).
Billionaire Dan Loeb’s Stake: 869,563 Shares Valued at Approximately $40.79 Million (NEW position)
Hut 8 (NASDAQ:HUT) is transitioning from Bitcoin mining into AI data center infrastructure. It doesn’t just host GPUs or sell cloud compute, it owns the underlying power and land assets outright — then leases that infrastructure to hyperscalers on long-term contracts.
The bull case centers on two campuses. Hut 8’s (NASDAQ:HUT) Beacon Point facility in Texas (352 MW) is leased to a high-credit tenant — widely understood to be Google — for 15 years, with a base contract value of $9.8 billion. River Bend in Louisiana (245 MW) is leased to Fluidstack as part of a broader agreement tied to Anthropic’s AI infrastructure buildout, locking in another $7 billion over the base term.
The nature of its contracts makes Hut interesting. Hut 8 (NASDAQ:HUT) bears minimal operating costs once the facilities are built. The cash flows are essentially fixed, long-duration, and backed by investment-grade counterparties — much closer to bond-like income than typical tech revenue.
Billionaire Dan Loeb bought a stake worth about $40.8 million in Hut 8 (NASDAQ:HUT) during the March quarter.
While we acknowledge the potential of HUT as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
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