Shares of Hut 8 Corp (NASDAQ:HUT) tanked in early trading on Thursday, after the company reported downbeat first-quarter (Q1) results.

The company signed a 15-year, 352 MW (megawatt) lease at its Beacon Point campus. Needham expects it to contribute more heavily toward the back end as the lease ramps into FY28.

The Hut 8 Analyst: Analyst John Todaro reaffirmed a Buy rating and raised the price target from $88 to $128.

The Hut 8 Thesis: The company reported revenues of $71 million. It missed Needham's $77.4 million estimate, due to lower bitcoin prices, Todaro said.

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Excluding bitcoin, Hut 8's adjusted EBITDA came in at $45.1 million. That’s 60% above Needham's $28.2 million estimate, "reflecting better-than-expected cost of revenue across both Power and Compute segments," he added.

The focus is now on the company's post-quarter announcements. There’s a lease for its Corpus Christi ...