--- title: "Hut 8 signed a second $9.8 billion Texas lease, then Keefe Bruyette cut the stock to $92 from $154" description: "Hut 8 fully contracted its 1,000 MW Texas campus with a second $9.8 billion lease on October 30, and Keefe Bruyette cut its price target to $92 from $154 two days later, warning no new leases are coming through early 2027. KBW's valuation warning outweighed the new lease in Monday's session." publisher: "The Inference" section: "Data Center" published: 2026-11-03T16:19:23.954Z modified: 2026-11-03T16:19:23.954Z canonical: https://theinference.org/article/hut-8-signed-a-second-9-8-billion-texas-lease-then-keefe-bruyette-cut-the-stock-to-92-from-154 language: en keywords: "Hut 8, Analyst Calls, Data Centers, Bitcoin Miners, Stock Moves" --- # Hut 8 signed a second $9.8 billion Texas lease, then Keefe Bruyette cut the stock to $92 from $154 > Hut 8 fully contracted its 1,000 MW Texas campus with a second $9.8 billion lease on October 30, and Keefe Bruyette cut its price target to $92 from $154 two days later, warning no new leases are coming through early 2027. KBW's valuation warning outweighed the new lease in Monday's session. On October 30, [Hut 8](https://theinference.org/markets/companies/hut-8-mining) [signed the lease](https://menafn.com/1111894053/Energy-Infrastructure-Stock-Hut-8-Corp-Nasdaq-HUT-TSX-HUT-Makes-TSX-Top-Gainer-List-On-Commercialization-Of-1-GW-Beacon-Point-AI-Data-Center) Keefe Bruyette said no one would sign for months: a second 15-year, $9.8 billion triple-net lease (a lease where the tenant pays taxes, insurance and maintenance) for 352 MW of IT capacity at its Beacon Point campus in Nueces County, Texas, with the same anonymous high-investment-grade tenant doubling its contracted capacity there to 704 MW [1]. The campus is now fully commercialized against its 1,000 MW AEP Texas interconnection, and Hut 8's portfolio stands at 949 MW of contracted IT capacity, $26.6 billion of base-term contract value and more than $1.75 billion of expected average annual net operating income, all leased to or backstopped by investment-grade counterparties [1]. The first Phase 2 data hall is due in Q2 2028 [1]. ## The market answered the lease with a sell-off Phase 1, [announced pre-market the same day](https://menafn.com/1111892466/Hut-8-Nasdaq-HUT-Rockets-Higher-On-First-Phase-Of-352MW-Beacon-Point-AI-Deal), sent the stock up more than 35% intraday [2]. Two sessions later, the lease was old news. Keefe Bruyette cut targets across seven bitcoin miners turned AI data-center landlords on November 2, warning of a "lease catalyst drought" through early 2027 [3]. The firm said the group trades near or below its estimate of contracted lease value. Hut 8 took a cut to $92 from $154, even as KBW acknowledged the company has [closed $7.5 billion of investment-grade project financing](https://finance.yahoo.com/markets/stocks/articles/riot-platforms-sinks-5-cipher-182739114.html) behind those 949 MW [4]. HUT fell 6.77% that session; KBW's valuation warning outweighed the new lease in Monday's trading [4]. *Chart: **KBW cut every target; Cipher and CleanSpark lost over half** Range chart of Keefe Bruyette's November 2, 2026, price-target cuts in dollars: Cipher from $28 to $11, CleanSpark from $25 to $11.50, Riot from $35 to $20, Hut 8 from $154 to $92, with Hut 8 highlighted as keeping the highest absolute target.* *KBW price targets before and after the November 2, 2026, reset, in US dollars per share; sources: StockTwits via Yahoo Finance [3][4] [3][4]* ## The cuts hit the names with less paper harder [Cipher Digital](https://theinference.org/markets/companies/cipher-mining), a fellow bitcoin miner turned AI landlord that does have leases, still took the steepest cut, 61%, to $11 from $28; [CleanSpark](https://theinference.org/markets/companies/cleanspark) fell 54% to $11.50 with an unsigned Texas lease and [a governor-ordered audit of data center grid connections](https://finance.yahoo.com/markets/stocks/articles/cifr-stock-gets-biggest-price-121159114.html); Riot cut to $20 from $35 with a $573 million bridge loan due December 31 [3][4]. Analyst Stephen Glagola also flagged Texas regulatory uncertainty weighing on the group [4]. ## A signed lease may not buy a premium The open question is whether the market pays Hut 8 a premium for signed leases its peers lack, or whether the whole group trades at KBW's contracted-lease values regardless [1][3]. Watch Hut 8's project-level financing for Beacon Point Phase 1: it is the next proof the leases convert to cash [1][3]. Deep dive: [our October 30 report](https://theinference.org/article/hut-8-shareholders-carry-river-bend-s-interest-and-tax-bill-until-the-first-hall-opens-in-2027), "Hut 8 shareholders carry River Bend's interest and tax bill until the first hall opens in 2027," covers the carrying costs behind these leases. ## Takeaway Hut 8's 1,000 MW Texas campus is now fully leased to an investment-grade tenant, but Keefe Bruyette sees no new lease catalysts before early 2027 and cut its target to $92 from $154, valuing the group at contracted lease value rather than growth. ## Sources 1. [MENAFN / Investor Ideas, Hut 8 Makes TSX Top Gainer List On Commercialization Of 1 GW Beacon Point AI Data Center, 30 October 2026](https://menafn.com/1111894053/Energy-Infrastructure-Stock-Hut-8-Corp-Nasdaq-HUT-TSX-HUT-Makes-TSX-Top-Gainer-List-On-Commercialization-Of-1-GW-Beacon-Point-AI-Data-Center) 2. [MENAFN / Investor Ideas, Hut 8 Rockets Higher On First Phase Of 352MW Beacon Point AI Deal, 30 October 2026](https://menafn.com/1111892466/Hut-8-Nasdaq-HUT-Rockets-Higher-On-First-Phase-Of-352MW-Beacon-Point-AI-Deal) 3. [StockTwits via Yahoo Finance, CIFR Stock Gets Biggest Price-Target Cut In Sector-Wide Reset, 2 November 2026](https://finance.yahoo.com/markets/stocks/articles/cifr-stock-gets-biggest-price-121159114.html) 4. [StockTwits via Yahoo Finance, Riot Platforms Sinks 5%, Cipher Down 8% as Keefe Bruyette Warns of Lease Catalyst Drought, 2 November 2026](https://finance.yahoo.com/markets/stocks/articles/riot-platforms-sinks-5-cipher-182739114.html) --- Hut 8 signed a second $9.8 billion Texas lease, then Keefe Bruyette cut the stock to $92 from $154 — The Inference. Canonical: https://theinference.org/article/hut-8-signed-a-second-9-8-billion-texas-lease-then-keefe-bruyette-cut-the-stock-to-92-from-154