Hut 8 Just Nabbed an Energy Supply Deal. Should You Buy the Bitcoin Mining Stock Now?

Hut 8 (HUT) shares closed nearly 15% up on Wednesday, July 2 after announcing a series of “five-year capacity contracts” with the Ontario Independent Electricity System Operator (IESO). 

Asher Genoot, chief executive of the Bitcoin (BTCUSDT) mining firm, dubbed these contracts “a testament to the commercial and regulatory fluency of our power-native team,” in a press release on Wednesday.

Including Wednesday’s surge, Hut 8 stock is up nearly 110% versus its year-to-date low set in late April. 

What IESO Contracts Mean for HUT Shares

IESO contracts are strategically positive for HUT shares as they offer long-term, stable cash flows tied to a government-backed agency, significantly reducing earnings volatility – a key concern in crypto stocks. 

Moreover, the plants will earn an average of 530 CAD per MW-business day. This means that Hut 8 is locking in predictable revenue across 310 MW of dispatchable capacity, strengthening its non-crypto business. 

Investors cheered Hut 8 shares on Wednesday because the IESO news positions the Nasdaq-listed firm to benefit from secular tailwinds in Ontario’s power market as well, where electricity demand is projected to grow 75% by 2050.  

In short, this agreement not only validates Hut 8’s “power-native strategy” but also diversifies and derisks its business model, potentially enhancing its appeal to long-term institutional investors.

Hut 8 Stock Could Extend Gains Further to $25

Hut 8 stock has doubled from its year-to-date lows, but Darren Aftahi, a senior Roth MKM analyst, remains convinced that it’s not done pleasing its shareholders just yet. 

Aftahi reiterated his “Buy” rating on HUT shares this week, citing the company’s transformation from a pure-play Bitcoin miner to a hybrid infrastructure firm that allocates power to BTC mining, high-performance computing (HPC) and AI cloud workloads. 

He expects Hut 8 to hit $25 per share in the second half of 2025 as it continues to optimize capital expenditures and accelerate speed-to-market on the back of this strategic pivot. 

How Wall Street Recommends Playing Hut 8 in 2025

Investors should note that other Wall Street analysts remain constructive on HUT stock as well. 

The consensus rating on Hut 8 shares currently sits at “Strong Buy” with the mean target of about $26.50 indicating potential for another 25% upside from current levels.