Bitcoin miner Hut8 (HUT)’s stack of over 9,100 coins provides significant capital to pursue future projects, broker Craig Hulme calls the stock a buy in a research report. Said it was upgraded. The company's Bitcoin stash is equivalent to about 75% of its current market capitalization and is “both a protection for investors and a very opportunistic capital for companies to use for growth,” George said.・The analyst team led by Sutton said:
The broker raised Hut8's rating from Hold to Buy while maintaining a $12 price target. The stock rose more than 13% to close at $8.83 on Wednesday following the results, also helped by a significant rise in the price of Bitcoin (BTC). Shares rose 2% in early trading Thursday.
“Over the past 18 months, we have considered and maintained a cautious view of the challenges surrounding HUT's mining operations, contracts, strategy and management,” Sutton and his team wrote, adding that “we have maintained a cautious view that these issues are resolved.” “This increases the potential for growth and stock price appreciation,” he added. far outweighs the risks. ”
“We are particularly optimistic about our strategic partnerships with major energy providers and the progress of the regulatory review process, which we believe will further enhance the company's potential,” they added.
The company's pipeline includes not only Bitcoin mining opportunities, but also high-performance computing (HPC) and artificial intelligence (AI) opportunities, the report says, with HUT entering the AI services market later this year. The annual revenue from this contract is $20 million.
of Validas In addition to assets, four natural gas power plants in Ontario acquired by previous management will provide additional sources of cash, the broker added.The company reported 1st quarter In yesterday's financial results, the company announced net income of $250.9 million (compared to $17.3 million a year ago).
