Coverage of Hut 8, a Bitcoin mining company, has started at Benchmark with a recommended buy position and an estimated price goal set at $12.
After the merger of Benchmark with U.S. Bitcoin Corporation was finalized, their business model’s diversity was considered during the evaluation process. This diversified model encompasses various new income streams from artificial intelligence, high-performance computers, managed services, hosting, and self-mining.
Furthermore, Hut 8’s investment banking disclosure revealed the market worth of their stored bitcoins. The comparison study noted that Hut 8 ranked second among listed miners for their holdings, with a total of 9,102 bitcoins in reserve as of March 31st.
“According to Benchmark’s assessment, Hut 8’s hut is currently undervalued compared to other bitcoin mining companies. However, they anticipate this price difference to decrease as Hut 8 carries out its self-mining growth strategy.”
Based on the assessment, the value of the corporation’s bitcoins is approximated to be $592 million, which represents about 82% of its total market value.
In November 2023, Hut 8 and the U.S. Bitcoin Corporation announced their formal collaboration. From then on, this new business based in America went by the name of Hut 8 Corporation.
On March 31, the corporation reported a total hash rate of 25.5 exahashes per second (EH/s), operated a hosting business consuming 250 megawatts (MW) of power, managed services, and administered approximately 884 MW of power capacity across eleven facilities. Furthermore, HUT manages a high-performance computing company based in Canada, which comprises five data centers.
On Friday, the Hut 8 Corporation shares traded on the Nasdaq ended the session at a price of $8.05, marking a 2.16% increase from the previous day.
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2024-04-22 17:56