Analyst upgrades Hut 8 mining stock to ‘Buy’, raises price target

As a seasoned crypto investor with a knack for spotting undervalued assets, I find myself intrigued by Hut 8 Mining Corp. The recent double upgrade from “Sell” to “Buy” by analysts at H.C. Wainwright caught my attention, particularly given the lifted price target of $13.50 per share.


Experts at H.C. Wainwright & Co. consider the shares of Hut 8 Mining to be worthwhile now, given certain strategic progress they’ve made.

Hut 8 Mining Corporation received a significant change in its recommendation from “Sell” to “Buy” by analysts at H.C. Wainwright after they reviewed the company’s Q2 financial statements. The new price target is set at $13.50 per share, which represents a potential increase of approximately 23% over the current market price. This optimistic outlook is based on the company’s recent strategic advancements.

Hut 8’s positive developments

The upgrade is propelled by multiple favorable factors such as Hut 8’s achievement in lowering electricity expenses to a competitive $0.032 per kilowatt-hour, post the accomplishment of its restructuring plan and the activation of a new 63 MW facility in Texas.

Furthermore, the company’s robust cash reserves – a total of $722 million, including 9,102 Bitcoins (BTC) – give it a strategic advantage for seizing market chances by purchasing and utilizing cutting-edge mining hardware.

As a crypto investor, I’m thrilled about the boost in Hut 8’s prospects following a significant $150 million investment by Coatue. This injection of capital increases the likelihood that Hut 8 will land high-performance computing or AI clients, which could lead to long-term, high-margin contracts for the company, making it an even more attractive investment in my portfolio.

Stock declines

Although Hut 8’s share price dropped by half within the last month, financial experts find this dip an appealing opportunity for investment, considering the company’s prospect of almost tripling its mining capacity (hash rate) by 2025.

With Hut 8 focusing on refining its operations and investigating fresh market possibilities, the recruitment of Sean Glennan as Chief Financial Officer, starting from August 21, is anticipated to bolster the firm’s financial approach even more.

In the second quarter of 2024, Hut 8’s revenue dropped by 32% compared to the previous quarter, amounting to approximately $35.2 million. This decline resulted in a loss of $0.78 per share according to GAAP (Generally Accepted Accounting Principles).

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2024-08-14 17:06